Let’s look ahead to the future and what will happen in the 2020s in the cryptocurrency market?
The year 2020 has come, let’s AZCoin News take a look at the innovations in the cryptocurrency market! What will happen to cryptocurrency in the 2020s?
Ability of extension
By the year 2020, new layer two solutions, or new blockchains, will be on the market. They will help increase transaction throughput, just as broadband replaces 56k modems leading to many new applications on the Internet. Such as YouTube, Uber, etc.).
Moreover, scalability is a prerequisite for the development of cryptocurrency utility applications. As blockchains thrive with several orders of magnitude scalability improvements, new apps start to grow faster.
Privacy is also one of the critical factors for every individual today. They will be integrated into one of the dominant chains in the 2020s. Just like how the Internet launched with HTTP and later introduced HTTPS as a default on many websites. Maybe 2020 is not yet a great year to start having a Blockchain with absolute privacy and an improved privacy coin than existing coins. Because privacy doesn’t make sense if all of your payments are broadcast on a transparent ledger.
Consolidation between cryptocurrency projects
Currently, there are some pretty good teams working on new protocols (Dfinity, Cosmos, Polkadot, Ethereum 2, Algorand, etc.), and excellent teams are working on second-class expansion solutions for existing strings. And we expect that the series will merge. Consolidate both the developer mindset, user base, and market cap over the next decade. Chains will together make the most progress on scalability, privacy, developer tools, and other features, etc.
Moreover, we will also see many M&A deals among these teams. However, the imperfect scenario would be to appear a reverse fork if you do not use a chain, and each token can exchange in a fixed proportion to the token received. There will be many tokens, such as open-source companies/projects/DAOs/charities in the world /… but only some chains will provide power for the necessary infrastructure for public this company.
2010 is mostly the year of investing and speculating in cryptocurrencies. In particular, most transactions promote most activities and business models most profitably. This trend will continue in 2020 and beyond. More potential, more useful new companies will appear in 2020. And this will also be the year promoting the utility phase. People will use cryptocurrencies more than just for trading purposes. Such as staking, borrow / lend/margin, debit cards, earn, commerce, etc.
The start-ups in cryptocurrency grow stronger
Like the dot com craze that started the idea of starting an Internet startup, by the end of 2020, nearly every tech startup will begin to have a lot to do with cryptocurrencies. First, startups will raise funds using cryptocurrencies. Second, they will use cryptocurrencies to gain conformity with the product market by issuing tokens to early adopters. Third, they will bring together communities and global markets at a rate we’ve never seen before in traditional startups.
At this time, startups will have legal difficulties. However, beyond this difficulty, they will have excellent advantages moreover, as there are many new generation start-ups, innovations from startup companies creating exciting applications.
Referring to this issue, Coinbase CEO Brian Armstrong said:
“The next 100M people who get exposure to cryptocurrency will not come from them caring about cryptocurrency, but because they are trying to play some games, use a decentralized social network, or earn a living, and using cryptocurrency is the only way to use that particular application.”
Coinbase CEO Brian Armstrong
Unlike cryptocurrency startups, the next area of development will be emerging markets – where the current financial systems are gradually collapsing. In particular, countries with high inflation rates and large money transfer markets are where cryptocurrencies can shine.
In 2019, there were over 5,000 people in Venezuela with at least one transaction with a store that accepts cryptocurrencies. By the 2020s, the adoption of cryptocurrencies in emerging markets is expected to reach hundreds of millions of users, with at least one country exceeding the limit for the majority of transactions in their economy to occur in the cryptocurrency.
Institutions large and small have begun to enter the cryptocurrency market. Hundreds of people have joined Coinbase Custody in the past 18 months, and it is highly likely that this rapid growth will continue in 2020, with even larger organizations joining. Finally, every financial institution will have some cryptocurrency-related activity, and most funds will keep a portion of their assets in the cryptocurrency.
Central Bank Digital Currencies (CBDCs)
While Libra drew people’s attention in Washington DC, China took the initiative by starting to digitize the yuan and making Blockchain one of its core technology investments.
The United States is currently chasing and has had active discussions on how to digitize currencies. CENTER, with its USD Coin, could be the solution that the United States switched to, or the Fed could try to implement its digital dollar using Blockchain.
Mature cryptocurrency market structure
In the 2020s, the structure of the cryptocurrency market will grow more closely to the traditional financial world, these functions being separated from legal and regulatory perspectives.
Decentralization will develop
While cryptocurrency exchanges will mostly follow the traditional financial services model, a separate world will thrive in a completely decentralized cryptocurrency sector. In other words, once you get your fiat currency into cryptocurrencies, you can go into a miraculously innovative place of cryptocurrencies into cryptocurrencies. There will be greater privacy in this world, with private money and non-custodial wallets seeing greater acceptance. As the decentralized cryptocurrency economy grows, many people will make a living from cryptocurrencies and seek opportunities in a free global economic market.
The cryptocurrency billionaire flippening
With Bitcoin expected to reach $ 200,000, more than half of the world’s billionaires will come from the cryptocurrency market. That means more people will know about professional technology and will have access to large amounts of capital in the 2020s. This will increase the amount of money invested in science and technology and I think we also will see many people participating in cryptocurrencies turn to charitable activities.
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