At the beginning of 2019, things were not looking so rosy for cryptocurrency traders, especially bitcoin. However, the industry saw tremendous growth with the birth of new alliances, bitcoin and Ethereum surviving the crush, new crypto products, and the maturity and growth of various blockchain protocols. In 2020, more developments will affect how the cryptos are traded will emerge, and anyone who trades is keeping a keen eye on these trends. Here are four of the major cryptocurrency trends expected in 2020.
Trends in Cryptocurrency to Expect in 2020
China launching its Central Bank Digital Currency (CBDC)
Some of the largest crypto exchanges are made in China, so it’s no surprise that the country is introducing a central bank digital currency. In his speech, the president of china President Xi Jinping confidently said that blockchain is the future, and China will be the leader in its development and research. China is actively pursuing the Digital/Electronic Payment or CD/EP, and speculations say that it will be formally introduced in 2020, even if it will be a limited scope or to test its viability.
Lighting network adoption
Lighting network provides instant transactions and payments, which has made it popular among traders. It’s a layer 2- payment protocol that’s implemented on any blockchain such as Bitcoin and Ethereum. The technology has increased the transaction speed and lowered the associated charges. This unforeseen market efficiency will come in handy for bitcoin and other cryptocurrency traders, online store transactions, and programs such as Paxful Peer Program, which diversifies how you can earn money with cryptocurrencies. Such programs make it possible for you to invest in cryptos and give you access to monthly online training and offers an opportunity to earn passive income through affiliate programs.
Although cryptocurrencies have been unregulated for a long time, we are starting to see friendly rules take shape. Wyoming, for instance, has implemented around 13 laws to regulated blockchain and cryptocurrencies over two years. The regulation has made the not-so-popular state a hotbed for blockchain companies, mainly because the rules are digital-friendly. These have not gone unnoticed as Colorado, New Mexico, and Arizona looks into introducing similar laws. IRS has also firmed up its guidance on reporting crypto trading and transaction for the coming tax season, while The Federal Reserve is keen on a potential digital analog. These laws are expected to increase transparency and growth in the industry.
Privacy in transactions
The increase in privacy during transactions has been a significant concern for a lot of traders. Thankfully, products have been developed to fill this gap, such as the Ernst & Young Nightfall over the Ethereum ecosystem.
2019 was a great year for cryptos, and things are expected to get better this year. These main trends to watch already promise that blockchain is coming of age. Digital assets and blockchain protocol are expected to grow in their use, metrics, and adoption rates. Some experts predict a secular bull market as the consolidation period seems to fade out. It will be interesting to see how the year unfolds.