As the pandemic continues to wreak havoc on the global economy, the world of cryptocurrency reveals its multilayered potential for the future. Yes, it’s true that the stability of the bitcoin as well as other cryptocurrencies may have been uncertain, as it has been in the past as well, but there seems to be an increase in investing and trading opportunities as 2020 unfolds. Whether you are a novice investor yourself, or you’ve been in the trading business for a while and merely looking to expand your portfolio, crypto is a promising venture to consider.
You can expect everything from greater cryptocurrency diversification, efforts to create stability for the major crypto players, improved regulation, all the way to better and more effective hardware for professionals and amateurs. Here’s the breakdown of the 2020 crypto trends and novelties we can expect in the months to come, and that will hopefully help you make smarter investments for your future investing and mining endeavors.
Country-specific cryptocurrencies on the horizon
Delay-free transactions, increased, practically impenetrable blockchain security, and other perks have all contributed to the notion of country-specific cryptocurrencies. China, for example, is on the verge of releasing its own digital currency, while Sweden is planning the release of e-Krona.
This is a truly groundbreaking step forward for many countries of the world, and one that is bound to inspire other nations to consider the change, as well, to boost the stability of any banking system in the world, and not to mention the security of each digital transaction, and the sustainability implications for printed money.
Bitcoin halving and its impact
In May this year, there was a bitcoin halving event that changed the inflation rate for this cryptocurrency, thus leading to a potential increase in its value. Bitcoin halving simply means that the number of bitcoins released into the circulation is now halved once again (as this event is scheduled to occur roughly every four years), and now each block mined yields 6.25 bitcoins.
Due to the finite nature of the currency in question, knowing that it now takes double the effort to mine and achieve the same results, it’s natural to expect the value of bitcoin to increase. Although the previous halving events have led to the bitcoin’s value to eventually crash, its end price would still be higher than before the halving, thus slowly increasing the overall value of the currency.
Advanced mining tech in the spotlight
As the digital aspect of mining is developing at a staggering speed, it makes perfect sense that the tech used in the process needs to keep up and meet the demands of the growing clientele. Mining is no longer just a professional endeavor reserved for companies and dedicated mining experts. Widely-available, mining is now possible for any individual, provided that they invest in the right tech tools.
Most cryptocurrency lovers will likely opt for an ASIC miner model that boasts superb technical specifications, including a high hash rate paired with great energy efficiency and noise management. Since more people are using these powerful tech tools as household, private investment devices, 2020 will be all about mining hardware that provides superior mining prowess and has low energy demands. Enterprise-level technology of the same nature is quickly evolving, so that dedicated mining businesses can upgrade their gear in the months to come.
Cryptocurrency across industries
What may have started as an investment opportunity, much like gold and other precious metals, quickly transformed into an opportunity for major retail chains. What are the chances to go to Walmart and pay for your groceries in gold? Zero. Soon enough, however, some of the world’s largest retail companies will introduce cryptocurrencies as a valid payment method.
In Germany, Burger King accepts bitcoin for online orders and deliveries, whereas Starbucks uses a designated payment app to let customers pay for coffee in crypto. You’ll find that hotel chains, retail stores, and travel platforms also accept bitcoin as a valid form of payment, and more players will soon join the game.
Banking and FinTech
Once upon a time, PayPal was a groundbreaking platform for digital currency exchanges, one that the entire world used in order to buy online, and conduct transactions on an international scale. Today, we have a slew of such platforms with similar if not the same functionalities, perfectly equipped to replace traditional banking as we know it. FinTech companies have introduced their own digital banking systems to simplify global transactions, increase their security, and introduce greater trading transparency.
So how can traditional financial institutions such as any ordinary bank compete? Well, in 2020 more than ever, banks will integrate their own as well as existing cryptocurrencies into their systems. This June, the Banque de France started its own digital euro experiments in order to see how the transition might affect their business model.
The blockchain technology combined with innovative cryptocurrencies and mining gear have brought on a surge of digital investments and changed how we perceive finances. Entire countries, such as Sweden, are slowly switching to digital currencies, while bitcoin mining remains one of the most pivotal diversification methods for any investor. These are trends that aren’t merely affecting the crypto world, they’re actually causing a major shift in the global economic system and the transactional value of all the currencies we use today.