For the entire period, cryptocurrency has been around, we have witnessed several trends, which were, and remain influential to the adoption, regulation, volatility, as well as the development of new digital coins. Keeping up-to-date with some of the upcoming digital currency trends comes with its unique benefits, as users can make sound predictions on what lies ahead for the market, hence, making smart investment decisions.
We highlight some of the most prospective cryptocurrency trends expected this year, and probably several years to come.
Digital currencies are taking over
Strange way to start, but cryptocurrency is already a trend for 2020. Recent developments point towards an increased popularity of digital coins like Bitcoin and other coins, which are accepted as payment means in many industries. A good example is in the gambling industry where you can play online casinos with cryptocurrency, already accepted in big brands.
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It was widely expected that 2020 would see the premier real-world implementations of digital currencies backed by the central bank. With China and Turkey set to launch their digital currencies by the end of the year, it could be just the beginning of a new wave of digital currencies taking over.
A growing interest in institutional investment
There were suggestive moves at the beginning of 2020 that there would be more trading activities from institutional investors, in addition to the overall growth of volume in terms of derivatives markets.
The Bakkt Bitcoin futures exchange reports weekly growth in cryptocurrency volume growth, a trend that is highly likely to go on throughout the year. The introduction of more sophisticated crypto-related investment tools has also been mooted, which means a lot of attention is being focused on cryptocurrency.
Increased regulation
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State authorities have stepped up efforts to create an all-inclusive regulatory structure. A perfect example of this would be the introduction of Financial Action Task Force (FATF) rules, as the recommendation for making it mandatory for all crypto exchanges to collect extra information related to their user base and afferent transactions.
Global adoption of these structures could lead to the delisting of some of the digital currencies that will be unable to toe the line. It had been indicated earlier that all countries must implement this particular recommendation by the middle of 2020, along with a review of the ‘travel rule.’
Facebook’s Libra Coin to be launched
When Facebook announced it would be launching its digital coin, a lot of things happened on the crypto scene. Most significant of all, trading volumes and the usage of cryptocurrency globally were affected.
There have been all sorts of controversies about Libra, making it rather difficult to predict how successful it will be upon launch. Going by the popularity of the Facebook brand, there is a high likelihood Libra will; stimulate the crypto market, and profoundly so. The idea is to introduce nearly a third of the world to digital currencies, meaning the value of the coin will bloat.
Bottom line
We have seen more governments loosening up on their previous stands regarding cryptocurrency, which is a good thing for the market. It means the world is growing more privy to its potential, and we could witness more crypto-friendly regulatory frameworks from these governments. Such a move would only encourage positive price vitality and, consequently, an industry boom.
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