The on-going COVID-19 pandemic not only affected our trips and vacations, but has had a major impact on the day-to-day lives of many people around the world, and mainly businesses. Many businesses across various sectors have been deeply affected that it might even take a few years for them to recover from it. But although 2020 and the pandemic calmed the success waves of several industries, one industry that still remains steady, and in fact, further shaping up is the cryptocurrency industry.
While predictions about cryptocurrencies becoming the future currencies have been going around for a while now, 2020 witnessed some interesting proceedings and important developments around the cryptosphere. Here, in this article, we are going to discuss some of the most significant events, trends, developments that are revolving around in 2020, and shaping up the crypto market on the whole. So, let’s dive in.
- Bitcoin Halving
Bitcoin halving is one of the most notable and anticipated events around the cryptosphere as it plays a key role in cryptocurrencies’ deflationary nature, and paves way for driving mainstream interest towards cryptocurrencies. The event takes place once every four years, and the last event took place on May 11th, 2020, which is the third bitcoin halving event so far. This halving event set forth the reduction of Bitcoin’s issuance rate to 6.25 BTC from 12.5 BTC, for every new block that is mined every 10 minutes. This Bitcoin halving event especially has seen record-breaking media attention, as well as unprecedented interest from institutional investors and volumes compared to the one that happened in 2016.
Also, this Bitcoin halving has revealed a strong bullish sign for the bitcoin and cryptocurrency market and a significant year for institutional investors and cryptocurrency exchanges.
- Libra and other stablecoins domination
Facebook announced the introduction of a new stablecoin in summer 2020. Libra is said to have the potential of capturing a user base of nearly 170 million in the U.S alone. And even though cryptocurrencies are widely popular, many investors are still uncertain about investing in them due to the price fluctuations. Stablecoins are a perfect solution for this as they are backed by fiat or other traditional assets that prevent price fluctuations. 2020 is expected to be a good year for stablecoins and experts predict that there will be an increase in the adoption of stablecoins. Also, libra could mark the point at which cryptocurrency goes mainstream, and several other technology and financial companies will certainly follow.
- Governments incline towards cryptocurrencies
As discussed earlier, crypto businesses are steady and strong in spite of the unfavorable circumstances of many other businesses, and for this reason, it is getting more and more traction among global potential investors and as well as with governments. Some are said to be even working with central banks to launch their own cryptocurrency. Governments of various countries are adopting crypto, and the list is expected to grow further in 2020.
- Crypto tie-ups with corporate
Cryptocurrencies have already been adopted by various multinational companies and various companies are launching their own crypto. Facebook announced its own stablecoin crypto which is Libra and JPMorgan Chase announced its own crypto known as JPM Coin in 2020. Apart from these, many experts have also predicted that various other multinational companies might also launch their own cryptocurrencies in 2020.
- Crypto and FinTech
Many key players from FinTech and the financial sector have adopted crypto into their space in 2020. Various companies and enterprises around the world are included in this. Such companies have shown major interest in cryptocurrencies by initiating Bitcoin futures, custodian services, and other options to institutional investors. This has led institutional investors to invest considerably. And cryptocurrency exchanges are making substantial profits via such investors.
These are the most significant trends so far in the year 2020 in the crypto space. So, what do these trends indicate? What is the best way to make maximum profits out of these favorable crypto market conditions?
Cryptocurrency exchanges have always been the point of convergence that drives maximum volume and profits for the cryptosphere. They pave the way for entrepreneurs to exchange their cryptocurrencies and boost up profits. Especially with these major trends making rounds in the cryptosphere and market conditions being favorable more than ever, there is no better time to get rolling in the market with your own cryptocurrency exchange software.
With already evolving demand and competition, and with the growing interest of investors towards cryptocurrency exchanges, these above-mentioned trends have further enhanced the credibility. Apart from these, there are also other predictions revolving around from market experts such as advancements in regulatory compliance in different countries around the world, further new implementations, use-cases, etc.
All of these factors make it evident that 2020 is indeed a lucrative year for institutional investors, cryptocurrency, and crypto exchange owners. So, what are you waiting for? Conduct in-depth research, collaborate with the right company, and get started with your cryptocurrency exchange development already, to get rolling in the market soon and maximize profits for your business.