With the end of 2019 fast approaching, it’s high time we started discussing what’s next for cryptocurrencies in 2020. Of course, the state of the cryptocurrency market is variable, and with so much global unrest both politically and economically it may be difficult to say for sure what the future of cryptocurrency will be. Still, it’s possible to make a few predictions based on the behaviors of certain coins and trends over the past few months. As we close off 2019, here are a few cryptocurrency trends you need to be aware of as you begin investing for the year 2020.
If there’s one thing that’s for certain for 2020, it’s that Bitcoin will continue to lead the pack as the most popular cryptocurrency. Bitcoin was the first cryptocurrency, and completely changed the market in terms of digital currencies and trading. While it’s had its ups and downs— the 2018 cryptocurrency crash comes to mind— all in all it’s proven that it has staying power. Experts are predicting that the Bitcoin price will grow by 200% over two years, so it’s best to buy in now if you haven’t yet.
The second most popular coin on the market has taken a hit in popularity in recent months. Many a thinkpiece has been written on Ethereum’s issues of scalability, as more and more users and transactions create a bottleneck in the blockchain. Still, with Phase 0 of the Serenity upgrade set for 2020, investors are keeping an eye out for how the cryptocurrency will fare. Another factor that could come into play is the state of DeFi. If the smart contracts platform continues to grow in popularity, it could pull ahead of its direct competitors to be the number one choice on the market.
XRP could become the king of banking infrastructure, and the forecast for the cryptocurrency sold by Ripple is quite optimistic. Big money transfer companies like Western Union and Moneygram are already considering using XRP, which could bode well for the cryptocurrency in 2020. However, several issues have popped up as of late, not least of which is the question of whether or not Ripple should have registered XRP as a security under U.S. law. While the answer to that question remains to be seen, investors should be cautiously optimistic about XRP’s future.
For beginners who are wondering which coin to invest in, EOS may be one of the better choices around. The future of EOS.io as the top system for enterprise applications seems bright. If ever big brands like Twitter or Facebook shift to a decentralized platform, it’s likely that that platform will be built on EOS. Unlike ETH, EOS is highly scalable, and most ETH projects could be transferred to the EOS network in the event that Ethereum’s scalability issues don’t resolve themselves. Experts say that 2020 could be EOS’s golden age, so definitely keep an eye on this one over the next few months.
With the 2018 cryptocurrency crash, where the price of Bitcoin fell by about 65% from the month of January 6 to February 6 2018, it’s understandable that investors are a bit wary about the volatility of cryptocurrencies. While the price of Bitcoin and other cryptocurrencies have evened out and the market has begun to mature, investors are looking for less risk-heavy currencies. Enter the stablecoin. Currencies tied to physical value like the U.S. dollar or gold are slowly gaining popularity, and may continue to do so in 2020. You can check Solid Trust Pay’s article ‘What You Need to Know About Gold-Backed Cryptocurrencies’ to learn more about gold-backed stablecoins and why investors are so interested in them.
Daniel Ling is a tech writer, gamer, and cat dad. He graduated with a Bachelor of Science in Information Technology an indeterminate number of years ago, worked for a while in the IT industry, switched to startups, and now does writing in his spare time. If you want to catch up on the latest gossip about gadget releases, he probably already knows it, and if he doesn’t then he can at least Google it pretty quick. If you challenge him to a Star Wars trivia battle, you will lose.