2019 marked the moment of enterprise blockchain adoption. The news world hummed about blockchain and cryptocurrencies because tech giants like AWS, IBM and Microsoft have started to experiment with new tools. Payment companies and banks decided it’s the moment to add cryptocurrency services to their portfolio. But even with these advancements, no one can predict the evolution of technology accurately. In the next ten years, blockchain technology will still make waves, but the question is, will there still be room for cryptocurrencies? Should we expect to see adoption in emerging markets? Will organizations add a crypto component to their services? And most importantly, will institutions and governments open their doors to digital currencies?
2020 brings the beginning of the new decade, and it will likely set the trends for the next ten years. So, it’s not wrong to assume that this year’s events will influence the evolution of cryptocurrencies long term.
So, what does the year bring?
Cryptocurrencies will revolutionize the banking system
Everyone is ready for the banking and financial systems to evolve. Tech product developers and engineers created tools to allow financial institutions to use cryptocurrencies like Bitcoin. With the new technology, there’s no reason banks to ask their customers from 2 percent to 4 percent, when they swipe their credit cards. Cryptocurrencies transactions should run smoothly when banks integrate digital currencies into their operations. Even if Bitcoin’s price has fluctuated during the last years, most digital tokens (Ethereum, Tezons, Bitcoin) register a growth in their value. Tim Draper, the author of the book How to Be the Startup Hero, predicts that Bitcoin will value over $250,000 two years from now.
Blockchain experts predict digital currencies to be the future of investments
Since the first digital token came to existence, the markets have crashed multiple times, but the latest infrastructure enables cryptocurrencies to maintain a steady evolution. Financial experts state that the market is stable, mature, and ready to support the movement of digital currencies. We shouldn’t forget that digital tokens have started as an idea in the depths of the Internet that became a stand-alone financial system that is worth multibillions.
The most significant organizations in the world discuss adopting digital currencies. The institutions that consider investing in crypto believe in the potential of blockchain technology, which may have had some slips since its start, but it quickly adapted and predictions state that it will become a disruptive tool. Some compare investing in digital tokens with buying Amazon stocks for IPO price. The companies that are already working with cryptocurrency providers are impressed by the innovation that governs this industry. They have never seen a technology to evolve as fast as blockchain, and they expect digital currencies to be successful in long term, for all investments. But it’s crucial investors to spare no more than they could afford because the market is still volatile, no matter the advancements developers make.
Bitcoin will survive no matter the ups and downs it faces
10 years ago, both individuals and companies experienced financial loses, when the financial market registered a historical crash. The digital world responded to the collision with the creation of a digital token named Bitcoin. They firmly believed it was financial intermediaries that brought down the economy, and digital currencies could remove them from the business world.
But this was not the only reason organizations so quickly adopted Bitcoin. They also did it because it has a predictable inflation rate. The system was designed to produce only 21 million, so no other financial institution or currency can match this transparency. Until now, journalists declared it dead around 400 times, and only in 2019, they reported its end 40 times. But the thing with Bitcoin and other cryptocurrencies is that they won’t die any soon in the future because people trust them more than government currencies. Even Forex brokers prefer them because it’s easier to predict their evolution and rely on their strategies on their borderless. Now that they can work with a list of direct market access brokers without having millions in their accounts, they find it even more thrilling to use crypto instruments in their trades. Usually, Forex traders can rely on Direct Market Access order execution only if they have premium accounts. Still, with the latest advancements in the market, some brokers decided to offer this benefit to other types of accounts.
Cryptocurrencies have taught traders that not only government currencies are shiny, but even technology-based ones can also provide leverage.
Crypto start-ups are expected to rise in 2020
2020 marks a decade that will see a new type of start-up, the crypto start-up. A few years ago, the dot com trend started the internet start-up movement, and it took companies only ten years to move their operations online and create web pages, their clients can check when they need information or products. Financial experts think that by the end of the year, most tech start-ups will integrate cryptocurrencies components into their operations.
What features will define a crypto start-up? It will collect money using digital tokens, use crypto to meet the market’s requirements by encouraging users to use tokens early in the adoption process, and establish connections between marketplaces and communities. These companies will refer to themselves and their clients as evangelists because they will promote a trend; governmental institutions are still afraid to test.
But start-ups will also face regulation challenges, especially if they want to expand their operations overseas. Each state has its own rules and guidelines, entrepreneurs must consult and understand. These difficulties add to the traditional ones all companies have. They need to produce something the public wants.
The bottom line
Will 2020 be the year of cryptocurrencies? Only time can tell, but we cannot help but notice that their adoption will soon become a world phenomenon. Alongside start-ups and traders, organizations emerging in markets that already have a financial system in place will also seek ways to integrate the technology in their processes. We expect the territories with high inflation rates to encourage crypto to shine.