In 2020, cryptosphere will develop in a number of areas, which are based not only in bitcoin, but on the principles that were laid out by Satoshi Nakamoto the basis of the first cryptocurrencies. Interestingly, these principles are gaining increasing popularity outside of cryptodira, and the stock market is becoming the main standard for a new social ethics of humanity. What will bring the 2020 players a crypto-industry — understands the DeCenter.
In 2019, blockchain and crypto-currencies have become the subject of attention of key politicians and representatives of the global elite, and this is a sure sign that the innovation people are talking about, do transformerait human life.
At the end of last year, the Commission on securities and exchange Commission (SEC) proposed to amend the definition of who is an «accredited investor.» In fact, we are talking about the fact that the securities market want to allow the millions of Americans who previously the regulator did not miss. These changes were a direct consequence of the fact that the SEC felt that the world is changing and more and more people are interested in obtaining financial freedom. For this reason, we are witnessing a change years of entrenched positions of American officials in relation to the stock market.
Cryptocurrencies form a different approach to financial services, and it makes to change the attitude of regulators to the classic models of market behavior. So, in the key EU economy, Germany, legislators from January 1, 2020, provide banks the right to work with cryptocurrencies. In this country the process of development of decentralized energy sources that will put into question the need for a significant amount of Russian oil and natural gas in Europe. Iconic is that the group of ten major oil companies (Chevron, ConocoPhillips, Equinor, ExxonMobil, Hess, Marathon, Noble Energy, Pioneer Natural Resources, Repsol, and Shell) begins to use smart contracts to communicate with each other. This means that those companies which will transfer the process to the blockchain, will be more competitive than their counterparts who either do not do it at all or just limited to declarative statements.
At the same time, a difficult moment in the European Union remains the implementation of the provisions of the Fifth EU Directive on combating money-laundering (AMLD 5), which will come into force on 10 January. The new rules will oblige the platform to register with regulatory authorities to identify their clients and to give to the authorities the addresses of the wallets of users. In this situation, it is interesting that the circulation of cash Euro or dollars or in the EU or in the United States do not impose those requirements which are put forward to cryptomeria and transactions with cryptocurrencies as a whole. However, it looks biased, as the classic cash money becomes the instrument of a criminal action, an order of magnitude more than, for example, bitcoin transactions which is less than 1% of cases are used in transactions of a criminal nature.
And the fact that the Creator of the TRON cryptoprocta Justin San decided to support the famous ecoactivists Greta Thunberg, highlighting her $1 million in funding, reaffirms the increasing role of new technologies in the field of energy and environmental protection. Thus, de facto crypto-industry generates new social and environmental ethics not only of global business, but of all mankind.
First and foremost, in 2020 cryptologist drew attention to the launch of a national cryptocurrency (CBDC). Thus, according to the ECB, at the end of 2019 on launching CBDC worked with 18 different Banks (CB). In addition to the European Central Bank, involves the Bank of China, Tunisia, Senegal, Sweden, Venezuela, Singapore, Uruguay, Cambodia, Marshall Islands, Thailand, the Bahamas, Curacao and Sint Maarten, Turkey, Iran and Saudi Arabia.
Second significant for the stock market event will be the launch of digital currency from Facebook Libra and Gram from Telegram, despite all the difficulties associated with the increasing regulation of the cryptocurrency industry.
As for the key development trends of the stock market in 2020, we can note the following directions:
Investors will be interested in those cryptoprocta, which focused on the launch platforms to launch decentralized applications (dApps).
Increase the number of spheres, which will involve the blockchain and cryptocurrency. At the same time in the great potential the opportunity to implement smart contracts, I’m sure the owner and well-known crypto-enthusiast John McAfee. And the list of industries, which will involve developments of the crypto-industry is in the tens.
Decentralized Finance (DeFi) is an important part of cryptosphere 2020. In the framework of development of the sphere of DiFi the stock market finds a maturing decentralized trade, digital assets, crypto-currency depositories and staking cryptocurrency (crypto currency exchange Binance analysts make the bold assumption that 2020 will be «the year of staking»), cryptocurrency loans, as well as decentralized markets forecasts. This is stated in the report of the company Messari «Theses for the year 2020».
Decentralized Internet (Web 3.0) is something that will flourish in 2020, simultaneously creating a base for the development of the Internet of things (IoT).
More entry points on the cryptocurrency market will be institutional investors, as indicated by analyst Alistair Milne. This is also evidenced by Meltem Demirors, Director of strategy Coinshares, predicting that in 2020 this capacity will lead to the fact that «more and more companies will meet the wishes of customers to have part of their pension savings were invested in cryptocurrency».
As for cryptoprocta, the first in 2020 cryptologist waiting for the transition to Ethereum 2.0 on the basis of the PoS-algorithm and further development of the blockchain technology second level Lightning Network. And the market finds the emergence of new startups, in particular, focused on increasing the efficiency of the operational interaction between the different blockchains.
What will happen to the bitcoin price in 2020? The same John McAfee 14 Dec 2019, confirmed that he is confident in the growth of bitcoin prices up to $1 million before the end of 2020. The fact that bitcoin will have a tendency to grow throughout its existence, obviously. It also draws the attention of the trader on wall street with 40 years of experience, Peter Brandt.
That bitcoin January 2015 is the de facto in a situation of «parabolic move up», and that it will continue in 2020, says the founder of investment company Adamant Capital Tour Demeester. A lot of analysts to build graphics that really confirm a very important point: no fundamental change in the trend in the growth of bitcoin is not for a few years, and there is no reason to believe that this trend will continue in 2020.
Therefore, even if coming in may 2020 halving the Bitcoin network (a reduction of awards to miners for each block with 12.5 to 6.25 BTC) will be a shock to the mining industry, this fact may not change the long-term trend in the growth of the asset price. The only question is how fast will go up bitcoin. Entrepreneur Tim Draper 18 Dec 2019 confirmed his bullish Outlook, which he did on September 13 last year. In his opinion, the first cryptocurrency breaks the level of $250 000 twice in 2020 (likely within six months after halving), and it can happen in late 2022 or early 2023. The growth of Draper associates with the reduction of bitcoins after halving 2020.
Ex-risk analyst at Bear Stearns Tony Weiss believes that bitcoin will go up, but more moderately, and that the figures, for example, a $50,000 bitcoin will reach only in 2023. It is difficult to agree with his maximalist view that the growing role of bitcoin will lead to a significant displacement of altcoins with a market, as also said in its forecast for 2020, the head of the Ripple brad Garlinghouse.
It is theoretically possible to imagine that in 2020, as predicted by Weiss, the dominant figure of bitcoin will rise to 85%, but this situation is not static: it all depends on the credibility of the marketing teams of various cryptocurrency projects. And even the probability that in the end, bitcoin may lose its leadership, cannot be considered to be zero. One thing is certain: the principles on the basis of which operates the oldest cryptocurrency, will increasingly gain popularity in the world.
Commenting on the growth projections of the price of bitcoin, the founder of the company BKCM Brian Kelly pointed out that a strong reduction in price of the cryptocurrency has happened four times since 2013. However, in General, the movement of the first cryptocurrency is in a «channel» which is reminiscent of the escalator connecting one floor with another, that is, shows the rise. And he is confident that in the end the upper bound of the corridor in 2020 is at the level of $250 000, what he is talking about and Tim Draper. Kelly believes that in the next two years, capitalization of bitcoin will be about half the cost of the entire product of gold in the world, and this is just talking about reaching a high bitcoin price indicators.
The analyst also noted that «the growth of bitcoin from a few cents to its current price is an impressive achievement, but it is normal market movement for this asset. Moreover, it confirms that bitcoin has proved its viability». Kelly also drew attention to the fact that fluctuations within the upward channels allow traders to earn income several times 100%, which is «pretty good.»
Tom Lee, who for many years was the largest U.S. Bank JPMorgan on the position of the head of Department on trade in securities, also believes in the growth of bitcoin prices, and that «2020 will be for cryptocurrency the best year than 2019». And it is very difficult not to agree: as noted by entrepreneur Josh Miller, «crypto-currencies can definitely be of great benefit to the global economy and for humanity in General.»