The field of cryptocurrencies is a place where everything changes in the blink of an eye. New technologies, major market players and trends change much faster than in any other industry. From today’s point of view, many exciting developments seem viable. Even so, This chaotic industry may bring more opportunities in the coming months, and everything we’ve seen before will be overtaken by something truly outstanding. However, we will quickly make a registration.
The shift towards a cashless society
One of the most redefined trends in society of 2020 came unexpectedly. Just after Christmas, the world seemed safe despite the dire news from China. Later in the winter, however, the world had been taken over by a deadly virus in the blink of an eye. The COVID-19 pandemic has paralyzed, disrupted and stopped many industries and has caused people to rethink their attitude towards many things in life. Previously questionable practices such as remote work o Cryptocurrency payments have assumed significant importance and it seems that they will continue to be present even after the pandemic ends. Why work from the office when everything can be handled efficiently from anywhere in the world? Does it make sense to keep overspending on luxurious offices if there is simply no need for it in the digital age?
Plus, it’s time to ditch the cash – we have to take a step towards a new quality of life. In the meantime, The field of Blockchain has also flourished, as a new era requires more professionals in the field of distributed ledger technology. In today’s world, applications to interact with the world of cryptocurrencies have become advanced and simple enough to allow the purchase of digital assets with just a credit card. Stablecoin wallets are in high demand, and this obvious trend is no longer something exclusive to millennials as institutions join the club in substantial numbers.
Cryptocurrencies are no longer for geeks
The image of cryptocurrencies is changing globally faster than ever. Bitcoin (BTC) and Ether (ETH) are no longer a bubble, and thatThe market capitalization of BTC is now greater than that of Coca-Cola and Intel, and the Blockchain is embedded in many fields and operations. Furthermore, institutional involvement in cryptocurrencies is increasing as demand for Bitcoin soars amid the coronavirus crisis, with Grayscale seeing a dramatic rise in assets this year. More hedge funds are accumulating digital wealth rapidly – and that is sure to continue this year.
Although the Facebook-led Libra project still faces many stumbling blocks in front of the U.S. Securities and Exchange Commission and other regulators, its launch is continually delayed. Because the mix of different monetary policies is questionable for the success of the project, we are not sure that Libra will see the light of day in the current condition.
One thing is undoubtedly obvious: The world of traditional users needs more convenient interfaces to interact with cryptocurrencies – and they are coming. The digital divide is constantly narrowing, as in 2020 it is easier to open a checking account in dollars or euros than ever before.
Growing adoption of DeFi
Decentralized financing, or DeFi, has become one of the most prominent trends in cryptocurrencies since late 2019. The sector has come growing at an accelerating pace in the last six months, and a new industry milestone has recently been reached as the total value locked in DeFi reached a staggering new $ 4 billion mark.
Many companies operating in the field of Blockchain technology have already introduced their DeFi products. Popular protocols like Compound, Balancer, Curve and other platforms have opened the door to a whole new world of crypto opportunities for investors looking for deep liquidity, variable risk-reward ratio, and interesting and affordable modern financial instruments.
We are about to see further adoption along with user base growth as institutional capital comes to the digital asset arena. DeFi is growing at an incredibly fast rate, and it is of crucial importance to have a simple, efficient and economical solution in the entry and exit of Fiat money for this segment.
The advent of CBDC
Today, central bank digital currencies, or CBDCs, are a hot topic to talk about as well as a solution for development in many countries. China, one of the world’s largest technological breeding grounds, has begun to participate in the creation of the local digital asset. It would be exciting to see how the launch and implementation of the digital yuan could change the crypto world and shift the balance of economic power, removing the dollar’s status as a world reserve currency. Could this example inspire other leading countries? Competition can be fierce in this field.
Stablecoins initiatives continue to be hugely underrated around the world – Most cryptocurrency holders are subject to volatility and counterparty risk. It is not only the global or local projects of the banks that will be in the space in the future, since private companies are also in continuous development. Projects such as USD Coin (USDC), Paxos Standard (PAX) and Euros Statis combine the benefits of Blockchain with the reputation and relative stability of fiat.
Improving Privacy with Blockchain Technology
Real progress happens when a crisis looms. ANDIn the 90s, the Internet was something of a miracle, magic, or an arcane invention. Today, in the age of mobile-powered social media, we can hardly imagine our daily existence without the need to interact or communicate online. But with the growing commitment to digital life, we forget that all the available services, which are being used not only by casual users but also by well-known CEOs and even presidents, are still too fragile, despite technological advances.
The latest Twitter hack compromised many high-level politicians, celebrities, and tech people. The problem leads to the question of what to do next. Discussions about Blockchain-based enhancements have heated up in the blink of an eye. We may see more trouble as hacking activity and cryptocurrency ransom demands won’t go away anytime soon. Still, the DLT technology is sure to be noticed when developing a shield for this particular dagger.
Looking to 2020 and beyond
Many analysts make distant forecasts on the field of cryptocurrencies and the price of Bitcoin, foreseeing the possible future tendencies of the next decade. It is undeniable that this field, which was once a niche, is going to transform into a global ecosystem of the traditional market. Make sure to expect more price registrations, more inventions, and more adoption.
What will the world be like in 10 years? In the 20th century, this question was much easier to address, but any prediction made today is very likely to become outdated after a year. However, we can be sure that the decentralized technologies and services powered by DLT will shape the future progress and development of humanity.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.