fbpx

Top 5 Crypto Trends in 2020

Categories:

1. Bitcoin Block Reward Halving

As we know, bitcoin is a highly scarce asset, with a total supply of only 21 million. Every 4 years, the production of new bitcoin will be reduced by 50%. Now we are just 5 months away from the next bitcoin halving, which is around May 2020. Historically bitcoin halving has been a price driver because it reminds people of how scarce bitcoin is. However, while we are positive that bitcoin price will reach its new peak in the future, there is also evidence showing that each bitcoin market cycle took significantly longer than the previous. With each dollar added to the market cap, the percentages become more incremental, therefore a bull market at this scale will take years to play out its full effect.

2. China Issues Digital Currency

China has been very proactive in the field of blockchain and cryptocurrency. In terms of bitcoin mining, currently “65% of bitcoin hash power is in China.” Chinese president Xi Jinping made a public statement on Oct 25, “[We must] clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.” One of China’s major developments is the Digital Currency /Electronic Payment (DC/EP) Initiative based on blockchain technology.

What the central bank have in mind is a centralised digital currency among all,” Yao Qian, who leads the research at the People’s Bank of China (PBOC), told the South China Morning Post, “As money has evolved from the barter system to its metallic and paper forms, it is now going digital.”

3. Facebook Libra

Facebook’s payment network plan has been struggling under the scrutiny of US and European regulators. However, the Libra project’s GitHub repository is still active, and code submissions are ongoing. It is expected that when Libra officially launches, it would be restricted in terms of application, partners and functions at the beginning. However, with an ambitious mission to “enable a simple global currency and financial infrastructure that empower billions of people,” Libra should be able to maintain a relatively stable developing momentum once (if) it goes live.

4. Ethereum 2.0

Ethereum 2.0 is a major network upgrade on the Ethereum blockchain that is designed to migrate its current Proof-of-Work (PoW) consensus algorithm to Proof-of-Stake (PoS), and the block validation function will be passed from miners to special network validators. PoS is generally expected to be more scalable and energy-efficient than PoW blockchains like bitcoin.

The first “phase zero” stage of the Ethereum’s transition to Ethereum 2.0 is scheduled to take place on 3 Jan, 2020, which coincides with the 11th anniversay of Bitcoin genesis block. According to Vitalik Buterin, the transaction costs on the new Ethereum blockchain could rise 5-10% and Ethereum 2.0 may possess only about half the transaction capacity as originally planned.

5. Fi and On-chain Derivatives

In 2019 we have seen incredible progress of Decentralized Finance (DeFi), led by the market’s most systemically important protocol- MakerDAO. Maker’s stablecoin DAI underpins the majority of the DeFi ecosystem, but will likely face steep new competition on the lending and stablecoin fronts. As the DeFi industry continues to grow, it’s expected to see new on-chain derivatives being tested as crypto finance mimics traditional finance quite closely. If 2019 was the year of DeFi lending, 2020 will be the year of DeFi derivatives.

You can share this post on

Share on facebook
Share on twitter
Share on telegram
Share on whatsapp
Share on reddit
Share on linkedin
Reletad Post

DigiFinex Will Support ETH Potential Hard Fork and list ETHS and “Candy” Token

From 2020 to now, many public blockchains such BSC, Solana, Polkadot, and Avalanche raced to take over ETH’s users and market. Their advantages on low gas fee and quick transaction time made ETH eager to release effective Layer2 program to expand the capacity. Since Arbitrum was released, its ecosystem grew up rapidly and already owned many mature and popular featured projects on different race tracks.

Arbitrum Project Introduction

From 2020 to now, many public blockchains such BSC, Solana, Polkadot, and Avalanche raced to take over ETH’s users and market. Their advantages on low gas fee and quick transaction time made ETH eager to release effective Layer2 program to expand the capacity. Since Arbitrum was released, its ecosystem grew up rapidly and already owned many mature and popular featured projects on different race tracks.

Polkadot, the King of Cross-chain Explained

What is Polkadot? Polkadot is a heterogeneous blockchain founded by Gavin Wood, former CTO of Ethereum, is an impeccable blockchain project that is perfect in every sense. Its founder, Gavin Wood, is the author of the Ethereum White Paper and the person who knows the defects of Ethereum at heart. Polkadot was founded with the idea to solve Ethereum’s shortcomings and replace it as the “King of the Public Chain”. Read to find out more!

Fil Mooned Right Away After I Sold It. Am I One of the Weak Hands?

“Fil mooned right away after I sold it. I am the weakest hand in the crypto world.” said one of my friend who has been trading cryptocurrency for many years. He is a user during the public sale and bought FIL at the price of $2. After the FIL is unlocked, he sells coins wildly every day. But even so, he still hates the slow process of unlocking, so he directly sold all the publicly purchased Fil at the price of dozens of dollars.

%d bloggers like this: