Most people will readily agree that 2020 has been a tough year. However, in the midst of all the troubles, at least one thing has been flourishing in …
Most people will readily agree that 2020 has been a tough year. However, in the midst of all the troubles, at least one thing has been flourishing in these trying times: cryptocurrencies. The financial world is a mass of crazy ups and downs right now but cryptocurrency as a whole keeps trending up. It is the perfect financial vehicle for these times of volatile change and the uncertain future ahead. If you are interested in jumping on the cryptocurrency bandwagon or are already on it and looking for what may be ahead, here are five cryptocurrency trends to watch in 2020.
Continued rise in popularity
The biggest trend in cryptocurrency to watch in 2020 is a consistent direction upward. That is the way cryptocurrency is headed in 2020 and beyond. There is a lot to like about cryptocurrencies and in 2020, they are clearly gaining importance around the world. Cryptocurrency is more secure than fiat currency. It is more private. It isn’t backed (or manipulated) by a central bank or government. It also is not subject to the mountains of fees that financial institutions attach to traditional currency.
The biggest reason cryptocurrency is growing in popularity is that it provides simple answers to all the biggest problems with currency as we know it. But, that’s not all. It is becoming one of the easiest ways to conduct international transactions, a major consideration in our increasingly globalized society. It also is volatile which some may look at as a negative but many traders and investors see this as a new, exciting frontier with huge profits to be made in a short amount of time. Cryptocurrency lovers all have their own reasons for loving it but what can’t be denied is that more people are in that category all the time.
Proliferation of new currencies
In addition to the increased popularity creating new crypto fans all the time, people are beginning to see the potential in this market and are creating new cryptocurrencies all the time. In 2009, there was one cryptocurrency, bitcoin. Nine years later, that number has jumped to just under 2,000. Today, in 2020, that number has more than doubled : there are over 5,000 cryptocurrencies in existence. Companies, governments, and entrepreneurs are all trying to get into this trend and create their own cryptocurrency that can take the world by storm like bitcoin.
Also Read: 11 Best Passive Ways to Make Money While You Sleep
New cryptocurrencies are appearing seemingly every day and the major trading platforms are adding new cryptos all the time. Many of these new currencies will come and go but there are big hits as well. In June 2020, Compound released a new cryptocurrency and in the first week, it rocketed to a $2 billion valuation. Even smaller new currencies have found love from investors, though. Not everyone can buy bitcoin at its 5-figure price tag so new cryptos that start small with the potential to grow are exciting too.
Day trading of cryptocurrencies
The quarantine that has resulted from the global pandemic has created an army of day traders around the world. While the majority are flocking to the stock market, many of smart and adventurous day traders are gravitating to the cryptocurrency market. According to Cove Markets, cryptocurrencies are particularly attractive to day traders for a variety of reasons. Traders have access to markets 24/7, different types of cryptocurrencies to trade, and different ways to trade them.
The biggest reason cryptocurrencies lend themselves to day trading so well is the volatility. Day trading is all about making (usually) small profits in a short amount of time. The way cryptocurrency fluctuates, opportunities for enormous profits appear in a very short amount of time. Of course, There is also the opportunity for big losses, so investors and day traders have to be careful. If you do your research, though, and pick the right coins, crypto day trading can be very lucrative.
More practical uses
When you talk to, listen to, or read the cryptocurrency naysayers, you will hear the same refrain over and over again. They say that cryptocurrency is all speculative and only has perceived value. Critics say it is just a fad because you can’t spend it like cash. In 2020 this is changing in a big way. More companies are getting involved with cryptocurrencies and letting consumers use it as a form of payment. Companies like Microsoft, Overstock.com, AT&T, and BMW have all put systems in place (either their own or with a third-party) where they now accept cryptocurrency as payment.
The original crypto, bitcoin, has been around long enough now that it is starting to gain real value and staying power. Even though it is still volatile compared to fiat currency, it is stabilizing a bit as the financial markets start to understand it more. Stablecoins, a cryptocurrency that is backed by some sort of tangible asset is growing and makes sense as a crypto with purchasing power. Some experts believe that if Libra, the Facebook cryptocurrency, gets off the ground soon, it could be a game-changer for people using cryptocurrency in everyday life.
Regulation is coming
As mentioned above, cryptocurrency is secure, anonymous and free from financial and government regulation. Many investors love these factors about cryptocurrency but so do criminals. Cryptocurrency has become very popular with criminals and terrorist organizations thanks to all the privacy features. To help stop this and lend some level of oversight to the current Wild West feel of the cryptocurrency markets, state governments around the U.S. are starting to put regulations on cryptocurrency. The federal government and other governments around the world are sure to follow in 2020 and beyond.
Whether these regulations are truly being placed on cryptocurrency for the stated purpose of thwarting criminals from using it remains up for debate. Many cryptocurrency fans will tell you that this story is just a cover for governments to get their piece of the cryptocurrency pie and exert more control. Either way, the regulation trend is something to watch in 2020.
Conclusion
In 2020, cryptocurrency is entering its second decade of existence. It is becoming more popular, mainstream, practical, and regulated now. Where it goes from here is anyone’s guess but watching these trends, it is sure to be interesting.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
