Recently, cryptocurrencies were seen as ‘useless digital money’, however, situations have changed and folks have realized the possible of blockchain technology that is the essential pillar of cryptocurrencies.
There are various new cryptocurrency trends in 2019 plus they are likely to only increase during 2020. Blockchain technology isn’t only utilized by new projects but additionally being integrated and followed by well-established businesses and businesses which includes Facebook, J.P. Morgan, among others.
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Demand for Protection Tokens Increasing
Fundraising, in general, is definitely a difficult process for just about any startup and also established businesses. The blockchain sector has created innovative methods to raise funds, you start with ICOs (Initial Coin Giving) back July 2013.
ICOs allowed startups to improve capital fast thanks a lot to little if any regulatory restrictions, however, this enabled plenty of fraud and frauds. That’s when STOs (Protection Token Offerings) made their method in to the blockchain industry.
An STO is really a similar token selling but with the added advantage of being completely regulated and compliant with all laws and regulations in a particular jurisdiction. In accordance with a summer document from PwC and the Crypto Valley Association, STOs come in an uptrend and the tendency will keep on throughout 2020.
2. Tighter Cryptocurrency Regulations
Cryptocurrencies, generally, are not really managed or regulated and their cost is solely predicated on supply and requirement. The legality of Bitcoin along with other cryptocurrencies varies a whole lot fr om Nation to Country. Most countries haven’t banned cryptocurrencies , nor make using them illegal.
However, several countries have banned Bitcoin along with other cryptocurrencies. For example, The Central Lender of Nigeria has banned lender transactions in virtual currencies. Likewise, China provides banned cryptocurrency exchanges and investing platforms.
China didn’t end there and the People’s Lender of China has announced tighter rules to strengthen handle and clamp down on cryptocurrency investing.
Similarly, Europe is seeking to reinforce AML and KYC laws and regulations. The mandate was approved back in 2018, nevertheless, the deadline for lawmakers had been established for January 2020.
3. Adoption of Cryptocurrencies
Cryptocurrency professionals have always stressed the significance of adoption, not merely for cryptocurrencies however the blockchain in common. Cryptocurrencies have become quite common in some elements of the world, for illustration, according to a report performed by Statista,
Another great indicator of the amount of adoption of cryptos may be the fact that so many huge and established businesses are looking at the technologies by either creating their very own or adopting present cryptocurrencies. Facebook is a superb example, proposing a fresh blockchain cryptocurrency known as Libra.
Libra has already been facing plenty of pressure from the government, nevertheless, if it passes, it’ll be an enormous step for the bulk adoption of cryptocurrencies generally.
4. Stablecoins
A Stablecoin means a cryptocurrency that’s backed by way of a reserve asset, generally fiat currencies just like the U.S. dollar or gold and silver coins like gold. The most famous stablecoin in existence happens to be Tether (USDT),
Stablecoins are accustomed to minimize price volatility, It has led a lot of cryptocurrency exchanges to develop their very own stablecoins. Stablecoins became well-known around 2018 and are returning again now as you can find around 134 stablecoins currently announced however, not live yet.
5. Bitcoin Halving
Bitcoin halving is among the most significant events for Bitcoin and the cryptocurrency market generally. The halving is really a process that occurs roughly every 4 years and is really a fundamental pillar of Bitcoin’s network to eventually cap the way to obtain Bitcoin to 21 million.
5 BTC but will undoubtedly be cut in two to 6.
It really is clear that blockchain technology and cryptocurrencies are here to remain as increasingly more platforms are needs to show a lot of fascination with them. No one knows just what the future holds but we are able to be sure that blockchain will undoubtedly be there somewhere.