7 Things To Look Forward In Cryptosphere 2020
The crypto industry is no different, and there are so many things to look forward to in 2020.
With the birth of Bitcoin in 2009, the cryptosphere is already a decade old phenomenon. Some have positive feelings about it, and some are still skeptical.
But individual opinions hardly matter in such large phenomenons, and market forces shape the overall direction an industry will take.
Here are some of the things I am looking forward to the cryptosphere.
7 Things To Look Forward In Cryptosphere 2020
#1. Bitcoin Halving
How can it be, someone is in the cryptosphere and isn’t talking about Bitcoin halving 2020?
This cannot be true unless someone is living under the rock, but many, including me, are looking forward to this one moment in May 2020 when the Bitcoin’s block reward will half.
Currently, the Bitcoin network generates 12.5 BTC per successful block mined, which is going half in May 2020 to 6.25 BTC per block.
This will officially make Bitcoin as the most scarce thing ever found on earth, even taking over gold and thereby living upto its expectation of Digital Gold.
#2. DeFi Adoption
DeFi, also known as Decentralized Finance, is pioneering the era of financial innovation through the crypto revolution. The basic infrastructure is being laid, and with mainstream crypto adoption, it only expected to improve.
But this year, particularly one can expect the already existing DeFi platforms to scale. Also, the adoption of DAI has encouraged many to jump on this bandwagon, and it is proving to be beneficial.
If this gets more traction, which it is getting, one can expect millions and billions of unbanked people in third world countries to access financial products which they never thought once they could have.
This will lead to man second and third-order effects on the lives of these millions of people engendering a chain reaction of social change unheard before.
#3. Bitcoin’s Privacy Update/Fork
Bitcoin’s scaling debacle came to a halt in 2017, which the fork of Bitcoin Cash, but now the new debate is taking its roots quietly about how to make Bitcoin true fungible their by private.
If you don’t know Bitcoin is not anonymous, it is pseudo-anonymous. Satoshi Nakamoto left it intentionally like it, and there is no point in blaming anyone.
But at the same time increase, state surveillance, especially over our transaction habits, calls forth to fix the privacy issues of Bitcoin.
Bitcoin Lightning Network – a second layer Bitcoin scaling solution that started getting traction in 2018 is an effort towards privacy too.
When the lightning innovation is merged with other Bitcoin innovations such as Bitcoin Schnorr Signatures, MAST, Taproot and Graftroot, etc. then the bigger picture will start emerging.
Expect soft-fork related to these innovations to happen sometime after Bitcoin’s halving in May 2020; I am expecting it happen in the last quarter of 2020.
Up untill now, cryptocurrencies have been a market-based phenomenon where public cryptocurrencies like Bitcoin and Ethereum have thrived.
2020 will see the rise of full state-backed cryptocurrencies, also known as Central Bank Digital Currencies (CBDCs).
China is looking quite serious about this and might also win in this space race like state-backed crypto race in 2020. Given that it has already made several announcements in the last quarter of 2019.
India is also planning to have its digital Rupee based on blockchain as per the statement of India’s central bank, i.e. Reserve Bank Of India (RBI).
So expect atleast one of the major economies to go on this route of launching their state-backed digital currency managed by their central banks, especially to reduce costs and increase surveillance.
#5. Ethereum 2.0
Ethereum’s new architectural overhaul is underway, and they made significant progress in 2019. They have been particularly receptive to suggestions and feedback from a large part of industry experts.
Ethereum is expected to move from proof of work to proof of stake model, which is not an easy feat to achieve given the fact Ethereum is the second most valuable cryptocurrency on the market.
But slow and steady progress is being made, and they plan to take it first under the hybrid model of proof of work, and the proof stake is right on track to get implemented this year.
#6. Facebook’s Libra Launch
Facebook’s Libra project has garnered sufficient backlash from the regulators, which has left the project in a cold bath for the significant parts of 2019.
But if Libra can re-present itself and stay on track to launch its wallet for stable coins by 2020, I will say it will be a huge win.
Also, this will be a huge feat in itself, given the tarnished image of Libra. But it can too. happen that Libra moves entirely out of the jurisdictions where it is facing problems and operate from places like Hong Kong or Malta.
#7. Recessional Volatility
Everyone is expecting the recession to hit any time soon in 2020, and there is consensus that this is going to be very bad for everyone.
So do not expect crypto to do something extraordinary while it hits, but one can expect the cryptocurrencies to soar in the after-effects.
Having said that, it is hard to even comment on this because this is the first time cryptosphere will be put to the test under the recessional lab as in the previous recession, they were not born.
Expect a lot of volatility during this phase due to the overall nature of crypto markets as well as due the additional factored in recession talks.
Overall this going to be an exciting year for the cryptosphere.
Believe when they say, you are still early, and yes, these are still the early days. So knowledge is power here, and focusing on it can pay you huge dividends irrespective of recession or not.
So make up your mind and do your best !!
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.