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Main Bitcoin Industry Trends to Expect in 2020

Bitcoin Trends to Expect & Witness in 2020

2020 is ahead of us – it is expected to have a lot of significant events that will affect not only the capitalization of the cryptocurrency market but also the value of individual coins. We learned from experts the main trends of next year, among them the disappearance of altcoins and the growth of the Bitcoin market share, the emergence of national cryptocurrencies, and other events.

Central Banks to Focus on Developing Cryptocurrencies

The most anticipated currency today is the digital yuan. Given China’s leading position in the global economy, this will be a significant step in changing the financial system. The Chinese authorities are actively introducing many modern technologies into the everyday life of their citizens, so it can be expected that, at least within the country, crypto-yuan will quickly spread following the party’s plans.

And for the rest of the countries, 2020 should be the year of the release of their own digital currencies. But, most likely, they will appear after crypto yuan.

The appearance of CBDC on the state agenda was due primarily to the recognition of the potential of cryptocurrencies, in particular, stablecoins. At the same time, we would like to note that organizations such as the International Monetary Fund and the Bank for International Settlements (BIS) have repeatedly voiced that the Central Banks should start developing their analogs of cryptocurrencies. It is worth mentioning that they also talked about a single cryptocurrency for specific regions, in particular, for the BRICS countries (Brazil, Russia, India, China, and South Africa). 

Most likely, China can offer its national cryptocurrency for this role, which is entirely consistent with plans for its use in international settlements.

Institutional Investors & Mining

Today the market is saturated with equipment. Manufacturers have learned how to flexibly and quickly increase sales, which is a driver of network growth and keeps a reasonably stable moderate level of mining profitability.

Low country risks and legal transparency of the mining business are significant for investors. Professional players with serious expertise can only obtain such conditions with large volumes and low electricity prices. In 2020, some miners outside Asia expect a gradual decrease in the share of Chinese mining. The central growth regions shortly will be Kazakhstan, the USA, and Canada. North America, as a region with developed law and well-established investment protection mechanisms, is of interest primarily to the most cautious investors.

Bitcoin and Altcoins

The essential trends of this year will affect the cryptocurrency market in 2020. For example, the rapid development of the crypto derivatives market, primarily based on Bitcoin.

On the one hand, the emergence of regulated trading platforms in the USA is perceived by many as positive because they attract institutional investors. On the other hand, it is not a fact that derivatives contribute to the “bull market.” There were periods when trading in Bitcoin futures was active, even with a significant decrease in the underlying asset, although the supply contracts for Bakkt are, in theory, less speculative.

Another expected event is the Bitcoin halving, which will occur in May 2020. Again, many evaluate it as a factor in price growth. However, similar sentiments were relative to Litecoin this year, but the price increase was already “included” in the LTC price at the time of halving. The absence of sharp movements led to a prolonged drop in the value of Litecoin.

Throughout 2020, we will see a continuation of the altcoin crisis. There are thousands of coins on the market now, but the vast majority do not have liquidity, have no value, and are not in demand. Most likely, gradually, they will simply disappear.