The way the cryptocurrency world evolves will be marked by many trends. Some of these will catch the attention of governments and industries more than others. Here are some of the striking trends in the crypto world that one can expect in 2020:
- Halvening or “halving event” has occurred twice before as far as the Bitcoin is concerned. During these occasions, the miner’s reward for producing a single block is reduced to half the value. This halving is required for maintaining the supply-demand balance and to stop inflation. Since Bitcoin has a finite supply of only 21 million coins, halving happens every 4 years.
- According to crypto experts regulations and sanctions by the government are all set to creep in this year but these will not stifle the industry. Crypto assets are marked by high price volatility and since governments are slowly becoming aware of how secure these currencies are, they are deploying new frameworks for regulations, like the US or China. Till date, crypto coins do not fall in the category of legal assets and rules vary from one country to another. But this year, many countries are expected to allow crypto exchanges to deploy legal rules once these are registered with their respective regional authorities.
- 2020 will probably witness new crypto asset launched backed by strong industry giants. Earlier, many crypto coins had been launched but these soon disappeared. However, in 2020, things are expected to change because Facebook is prepared to come out with Libra while JPMorgan will launch the JPM coins towards the end of the year. The euphoria surrounding these launches is so huge that many finance companies will probably think of investing in crypto coins.
- A union of Artificial Intelligence technologies and blockchain technology is expected to take the world by storm. In 2020, you will probably see more and more efforts being made to integrate artificial intelligence and machine learning into blockchains which were the basis for cryptocurrencies.
- Upgrades are not very common but 2020 is expected to be the year of many upgrades. These will be needed to guarantee the scalability and privacy of cryptocurrencies, especially the Bitcoin Revolution network. So, stakeholders are likely to get a lot of benefits from key updates to their Bitcoin nodes.
- The Feds are going to step in this year; the IRS is keen to make crypto transactions taxable from the coming taxing season. With this happening many regional and national governments are likely to watch cryptocurrencies closely and regulations are imminent. But on the whole tax rulings are not completely against crypto coins; they are quite progressive if you see countries like Switzerland or Singapore. Their policies may not be defined but their governments want them to pay taxes; so, in 2020, it is expected that there will be more clarity on taxation laws. Legislations that exist at the moment are encouraging on the whole and growth is likely to happen with increased transparency. But highly restrictive laws, such as those being implemented by China, may create more trouble for these digital currencies.