Cryptocurrency Revolution – Will Cryptocurrency Markets Boom in 2020?
Cryptocurrency Revolution is an important aspect of the cryptocurrency industry. Cryptocurrencies have caught the attention of the mainstream media over the past several years. Gone are the days when it used to be a topic discussed only by a few in the tech community in hushed whispers, or as something used only in the dark corners of the deep web. Cryptocurrencies are becoming bigger with every passing day – and are getting backings from governments around the world. Cryptocurrency markets have been booming at a rapid pace – and the next two years are expected to be even bigger.
The cryptocurrency revolution began in the year 2009 with the creation of Bitcoin in the January of that year by a programmer (or a group of programmers) known by the pseudonym of Satoshi Nakamoto. Since the launch of Bitcoins, thousands of new cryptocurrencies have been created, serving various purposes. However, Bitcoin continues to be the market leader.
The cryptocurrency markets have enjoyed a thundering level of success over the past decade, and particularly in 2017 – the year which saw the overall market capitalization rise to unprecedented levels. However, starting early 2018, the cryptocurrency markets have been going through a rather turbulent time, which continues to affect the market presently.
What could possibly happen in 2020?
To understand how 2020 would be for the cryptocurrency markets, one needs to look at it from the present day perspective – at the past, the present and the future of the cryptocurrency markets. Let us take a closer look at the cryptocurrency boom of 2017 – which brought a massive attention towards the cryptocurrency sector, the cryptocurrency bloodbath of 2018 – which took away a significant amount of money from the cryptocurrency market cap, as well as 2019 – the year that is yet to come and what we expect from it. Together, these three factors can help deduce how 2020 would be for the cryptocurrency markets.
Analyzing Cryptocurrency Revolution Boom in 2017
2017 started off on a rather average note and as the months progressed, a number of major fluctuations were witnessed. At the beginning of the year, the price of one Bitcoin was close to $950. However, over the course of time, it began to grow and crossed $5,000. This price growth came to a standstill in August when two major events shook the cryptocurrency world – China declaring a ban on domestic cryptocurrency exchanges, as well as the fork in the Bitcoin network that led to the creation of Bitcoin Cash (BCH).
When did Bitcoin hits its peak
Prices fell to a low of $2900 – following which a slow recovery began, which eventually became a full-blown bull rally. Between the months of August to January, the price of cryptocurrencies went from $2,900 to $19,700 – a growth, the likes of which was never seen before. This massive growth in the price of Bitcoin was not a standalone event – as the effects of this price boom were seen across the entire cryptocurrency markets.
One of the biggest events of the year which lead to a massive mainstream investment into cryptocurrencies was that of Bitcoin crossing the $10,000 price point. This was followed by a boost in the mainstream coverage of cryptocurrencies, as Bitcoin became a household name. Not only did the media cover it, but it also became a part of political debates and parliamentary discussions around the world – giving it mainstream attention and thereby leading more investors towards it.
By the first couple of weeks of 2018, currencies such as Ethereum, Ripple, NEO and other major coins had hit their all-time highs too. Bitcoin’s growth rally paused mid-December – this was a direct effect of investments flowing into other cryptocurrencies (collectively known as altcoins). Hence, Bitcoin prices stabled out and witnessed a slight fall, while the prices of altcoins began to boom. However, this boom in the altcoin prices was not as long-lived as the surge in Bitcoin prices and markets started to collapse as 2018 progressed.
Analyzing The Cryptocurrency Bloodbath of 2018
The bloodbath of 2018 is an event that will live in infamy – but that wasn’t how the year was expected to be by most market pundits, at least not in the first few weeks. The first two weeks of 2018 saw a massive boom in the prices of cryptocurrencies as Ethereum and Ripple hit their all-time highs and almost every cryptocurrency was making huge profits. The likes of Litecoin, NEO, Cardano, IOTA, Monero, Bitcoin Cash and practically every name on the top 10 was surging with every passing day.
This growth rally, however, slowed down in mid-January and the trends began to reverse. A long awaited market correction finally hit the markets – and it hit the markets really hard. Prices began to fall, leading to Bitcoin eventually hitting the 5900s, bringing Ripple, the currency that had, at one point in time, crossed $140 Billion in market capitalization, down to $13 Billion as of this writing.
As much as the cryptocurrency boom of 2017 enticed new investors towards the markets, the 2018 bloodbath forced a large number of users out of the markets. The year began with Bitcoin having slowed down, but almost all the altcoins were on a major growth rally. Predictions were even being made that 2018 would be the year that Ethereum would overtake Bitcoin in an event known as ‘the flippening’.
However, far from that ever happening, the reverse happened and the prices collapsed. Ethereum, as of this writing, has recently recovered from a low of $265, the lowest its price has touched since November 2017. And it was not just Ethereum, as all cryptocurrencies are facing the heat of late. Prices are expected to gradually become stable over the course of the year.
Predicting The Movement of Cryptocurrencies in 2019
2019 is expected to be the year a slow surge begins again and market bulls help bring the price back up. Moreover, 2019 is also expected to be the year that Bitcoin takes a major leap forward in terms of adoption – leading to more users using it as a token that acts a store of value and not as an investment setup. This is being aided by technologies such as segregated witnesses and the lightning network, which help solve the scaling problems of the currency.
With these reforms in the Bitcoin network, it is expected that the transaction time will be reduced while transaction fees will also go down – incentivizing users to make use of cryptocurrencies as means of payments for transactional purposes. With the rapid rise in cryptocurrency prices, many individuals saw it as a ‘get rich quick’ scheme. However, while some users benefited out of the boom of 2017, there are a large number of users who are feeling the pain of the bloodbath of 2018.
2019 is expected to be a rather slow yet stable year where the prices remain stable and fluctuations remain low but the growth remains positive.
How is 2020 Expected to be for Cryptocurrencies?
The Bitcoin price prediction for the year 2020 seems rather optimistic. Many in the markets expect 2020 to be a year which would be quite similar to 2017 in terms of rapid growth. Predictions have been made by many such as John McAfee that Bitcoin may cross 500,000 USD by the end of three years – a period that ends in late 2020.
While it is practically impossible to predict the cryptocurrency price movements over a short term. It becomes even harder for a long-term period as many external factors also come to play. However, given that things move at a constant pace and not many external factors interfere into the markets. 2020 is expected to be the biggest year ever for cryptocurrencies.
There are a large number of factors which are responsible for the change in the price of cryptocurrencies. Over the years and it has been practically impossible to attribute them to a single factor. These factors can be the kind of attitude that the government shows about cryptocurrencies. The kind of news coverage that they get, the rise in the scams and crime in cryptocurrencies, etc.
Moreover, another big factor is the attitude of the investors towards cryptocurrencies. Prices will continue to boom as long as users see it as an investment opportunity. Thats if they do not adopt it the way it was intended to be adopted. Many in the crypto industry such as Vitalik Buterin have also pointed it out that the real product here is the blockchain technology. Although most people think its cryptocurrencies – which there has been a ‘gold rush’ of sorts about.
Conclusion on Cryptocurrency Revolution
While it is hard to predict the price of cryptocurrencies. One can still sense a pattern based on the movement of the prices over the years. Moreover, based on how the users respond to the economic conditions, cryptocurrency prices can take a drastically different route. However, considering that the market continues to follow a similar trajectory and all other factors remain unaffected, this is pretty much what to expect from 2020.
Author – Khushboo Shah