Cryptocurrency is a word known by many, but do people actually understand it? Most associate crypto with Bitcoin and possibly Ethereum, but few would be able to determine how cryptocurrency could – and already is able to – affect their lives. The 2020 Cryptocurrency Act was proposed in the United States to allow lawmakers to have some say in the regulation of cryptocurrency transactions, which gives further legitimacy to this alternative form of finance. So, how will cryptocurrency change your life in 2020?
Cryptocurrency has definitely had a boost in the past year, especially with the announcement that Facebook would create their own cryptocurrency, Libra. Indeed, the growth of programming apps has also helped the proliferation of blockchain, especially with so many offering blockchain app creation software. One of the most popular applications for cryptocurrency is when it comes to investing, especially with the rise of online platforms enabling more people to begin an investment journey. Given the nature of the world’s economies at the start of 2020, investing in cryptocurrency – which isn’t tied to an economy or governed by a bank – might be more appealing to many people.
Will Ripple Make Waves?
To determine the best cryptocurrencies to invest in 2020 is to see what the future holds for each crypto coin, as well as whether the mainstream has already been able to adopt it. For instance, Ripple Labs made many partnerships with financial institutions during 2019. The cryptocurrency makes cross-border transactions faster and more secure and has been adopted by banks such as Santander already. Some suggest that while Ripple has a USP when it comes to its uses, it will remain in the shadow of the more recognizable names in the industry. Many experts in the industry suggest that 2020 will be the year that Ripple is finally traded for $1.
Will Bitcoin Halving Double Its Value?
Bitcoin halving will occur in May 2020. This is when the number of Bitcoin mined every minute is cut in half in order to allow the cryptocurrency to endure. The previous halving measures have led to the price of Bitcoin appreciating in value. So, with this event in the calendar already, many suggest that it has already been priced for. Some even suggest that Bitcoin would reach a price of $50,000 in 2020 because of this. 2019 saw US Congressman Brad Sherman claim that Bitcoin could threaten the supremacy of the US Dollar. Should more people want to avoid using cash and move towards digital financial means, then this could become true.
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Has Ethereum Lost Its Nine Lives?
The blockchain technology underlying Ethereum is a likely reason for its dominance and market capitalization in the cryptocurrency industry. 2019 saw 1.4 million Ethereum dApp users (decentralized application), with the vast majority being completely new users. The benefit of the decentralized application of Ethereum can mainly be seen through the online collectible blockchain game CryptoKitties. News that CryptoKitties will move to their own blockchain will no doubt see some of Ethereum’s dApp users dwindle. However, the launch of the CloudBet platform for Ethereum betting could absorb some new adopters.
A factor in the growth of popularity of cryptocurrency could be out of its control – the downfall of other forms of money. Should the coronavirus crisis lead to an embargo on physical cash, digital alternatives could become the norm. Already thriving in the digital finance sphere, cryptocurrency could then have a whole new audience to get involved with its unique offerings. Cryptocurrency is likely to continue to change our lives in 2020, but experts are currently undecided on exactly how.