Throughout 2018, Bitcoin fell in price. It reached the limit of $ 3,500. It kept that price for the first few months of 2019. And now, after a year of turbulence, it entered 2020, reaching $ 8,600. Now the price has fallen after the global coronavirus pandemic drop, but after the initial shock it recovered and is still above $ 6,800.
Cryptocurrencies 2020: projected developments
Technology companies have started using blockchain in bulk. Facebook, Amazon, Apple and other giants use blockchain technology. Bitcoin also responds to this with its price. On the negative side, we know that many fraudulent operations have occurred. This is one of the reasons why many important economists and politicians, such as Nobel Prize winner Nouriel Roubini, have opposed cryptocurrencies.
Support from China
On October 25, 2019, the BTC price jumped by tens of percents. Chinese President Xinjiang announced that China will accelerate its efforts to adopt blockchain and cryptocurrency. The goal of the Asian power is to accelerate the technological development required for adoption across the government and companies. This was assessed as one of the key factors in the growth of the main cryptocurrency prices. The price of the largest cryptocurrency jumped to nearly $ 10,000. During 2020, China is to launch its own project to digitize its currency.
Greater adoption within the mainstream
Over the past 12 months, the number of financial institutions using blockchain has increased by dozens. For example, JPMorgan Chase and Wells Fargo have announced that they are working on creating their own tokens oand wanting to take advantage of the interconnected network. These mainstream institutions have created a good underlying spawn for price growth throughout the market.
Upcoming Bitcoin halving
The next movement comes precisely because halving is approaching. The natural supply from mining will be reduced by 50%, so many investors expect a higher price as a result. Halving is scheduled for May 12, 2020.
The reward is reduced from 12.5 to 6.25 BTC. Thus, each mined block will bring only half the reward.
Libra and Bakkt
Libra and Bakkt are projects that have attracted much attention. Facebook’s founder Zuckerberg had to face the the US legislature with his Libra digital currency project. Bakkt, on the other hand, bet on large investors, who offered many investment instruments. In the shadow of the global pandemic, Libra is now a bit forgotten, but Facebook continues to evolve.
We find the the opinion of one of the most respected American investors Peter Schifft very interesting: “Bitcoin can get to the moon due to this coronavirus crisis!” Peter Schiff is a very popular investor, which focuses mainly on gold. He is also a great cryptocurrency critic. It was him who announced that as the financial crisis is slowly approaching, and that the value of global currencies, such as the US dollar, the British pound and more, would probably fall. According to him, governments may not estimate correctly how much money they can put into circulation. Although he is a cryptocurrency critic, Schiff himself has long followed and even owned Bitcoin.
Indeed, 2020 will be a breakthrough year on a global scale. Cryptocurrencies will also face the changes, which will no doubt are happening. It is a great opportunity for them to prove their value and usefulness. And for all of us now it’s the best opportunity to learn how to use cryptocurrencies.