Twas the night before Christmas, and all through the house
Not a trader was trading, not even a mouse;
The stocking were hung by the chimney with care,
In hopes that Saint Nicholas and Trezor were there;
Investors were nestled all snug in their beds,
While visions of Bitcoins danced in their heads;
The sell orders were posted on exchanges with care,
In hopes that a Bull Rally soon would be there;
More rapid than lightning, the rallies they came,
And he whistled, and shouted, and called them by name;
“Now Bitcoin! Now Litecoin! Now Ether and Ripple!
If Monero can double, then you can triple;
The mining rigs hummed in the cellar with clatter,
In hopes that new bitcoins would soon be there;
From Papa John’s pizza all the way to the moon,
You all will be riding the rocket ship soon;
I heard him exclaim as he checked coin market cap,
Merry Crypto to all and HODL for now!
Ilias Louis Hatzis is the Founder at Mercato Blockchain Corporation AG and a weekly columnist at DailyFintech.com
This year, 2019 was a decent ride picking up steam after the first quarter, while 2020 doesn’t seem ready to slow down or put on the brakes. Instead 2020, might be a breakaway year, especially after the halving in May.
Who would of guessed that Libra’s wheels would come off? That Wyoming would be the only US state with friendly regulations for digital assets and digital-banking? That Bitcoin would have triple-digit gains since December 2018, when the market bottomed out? That cyberattackers compromised the Binance and made off with $41 million in Bitcoin? That Wall Street moved in with J.P. Morgan rolling out their own coin? That China went from a complete ban of cryptocurrencies to a highly publicized all in attitude on the blockchain? That crypto index funds and ETFs, among other things, would show us that with crypto, wealth building is for everybody?
Nevertheless, 2020 is swiftly approaching and it’s time to start the crypto predictions.
#1 Libra: Will go live, but with limited functionality
Governments worldwide work overtime to regulate the rapid emergence of cryptocurrencies and companies in the industry. Facebook has faced enormous hurdles from regulators across the globe, for Libra. It’s not even certain whether the project will be launched at all, if regulators are fully in line with it. But iteration is part of Facebook’s core fabric. Nine years ago Zuckerberg said at a press conference, “We’re trying to be innovative and iterative with our development”. I think this will be how they approach the regulatory problems. An iterative approach can result in ever-closer approximations of a solution, as accuracy improves with each step. Most likely, Libra will go live in one jurisdiction and with very limited scope, partners and functionality, as Facebook iterates everything.
#2 Digital yuan to be followed by digital euro and dollar
While in recent years, China has moved to regulate the cryptocurrency industry, it has been avid supported of blockchain and has been developing its own digital currency, that it will launch in 2020. There has been a consensus among central banks that they need to control money. Mark Carney of the Bank of England, was probably the first leading central banker to talk about the importance for the West to embrace crypto and digitally-enabled money. Christine Lagarde, the ECB chief and former Managing Director of the IMF, thinks a digital euro is a good thing for the EU. It is very likely that Steve Mnuchin, US secretary of the treasury, will announce the digital dollar in 2020, continuing his past narrative about tracking cryptocurrencies.
#3 Developing nations will embrace Bitcoin
While the big global economies are working on the their own versions of fiat backed cryptocurrencies, there are three billion people around the world that don’t trust in their government issued money. Across developing nations in South America and Africa (Venezuela, Argentina, Brazil, Zimbabwe etc) , we’ve seen rapid adoption for Bitcoin. I expect that across many developing nations in the world, people will want to have a form of digital money that they can rely on.
#4 Stablecoin heaven
The stablecoin trend will continue. While stablecoins are still in the discovery stage, they have become the holy grail, with dozens of projects trying to develop a digital currency with low-volatility, that can withstand speculative attacks and debasement. In 2019, the stablecoin market cap grew from $3.3 to $5 billion. In 2020, the stablecoin market will exceed $20 billion, as we see the launch of Libra and a few others and multi-collateral DAI, accepting BTC and other assets as collateral.
#5 The Lightning Network will do great things
The existence of the Lightning Network on top of the Bitcoin blockchain, already enables cheap, private and instant transactions and payments. The current number of nodes are 10,861 and the number of channels is at 35,000, with the network capacity at 859 BTC (or $6.5 million). In December 2019, Bitfinex announced that their exchange would support Lightning Network transactions. Now even Airbnb allows customers to book stays using the Lightning Network via the Fold App. In 2020, we will see an increased number of applications like the Breez app, created on the Lightning Network.
The new year, we will see crypto and blockchain move from away from something that’s trying to disrupt the old, into mainstream and becoming a bigger part of daily lives. With China’s digital currency set to be rolled out in 2020, digital money will come to the front and center stage. As global governments embark on a new moon race, to launch their own cryptocurrencies, mainstream adoption is set to accelerate.
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