Bitcoin's future is looking brighter than it ever has.
Are you currently HODLing Bitcoin? Or are you planning to invest in Bitcoin this year? Either way, you must be wondering about the future of Bitcoin in 2020 and how you can take advantage of this revolutionary new digital currency and asset class.
The future of Bitcoin is one of the most controversial discussions in the crypto community. Over the years, Bitcoin has been pronounced "dead" about 350 times as listed by Bitcoin Obituaries. But somehow or another Bitcoin has always found a way to survive and grow in leaps and bounds after every sharp price drops and depressing bear market phases.
The growth and acceptance of Bitcoin on a global scale are positive indications that the future of Bitcoin is assured. With governments and organizations increasingly acknowledging the potential of blockchain technology, this year may very well witness a surge in the adoption of blockchain by small, medium and large scale businesses.
Here are five indications that 2020 will be a promising year for Bitcoin and other Cryptocurrencies.
Bitcoin halving is one of the most anticipated events in the crypto space in 2020. This event, scheduled to take place by May, will reduce the supply of Bitcoin and mining reward by half.\
This year's halving will be the third halving in the history of Bitcoin. The first Bitcoin halving took place in 2012. Mining reward was reduced from 50 BTC per block to 25 BTC per block. The second halving occurred in 2016, and mining rewards were further slashed from 25 BTC per block to 12.5 BTC per block.
After the halving in May, mining rewards would become 6.25 BTC per block, therefore significantly reducing the total circulating volume of Bitcoin.
Many cryptocurrency analysts believe that halving is a positive step to increasing the value of bitcoin. Over the years, Bitcoin has always had a significant increase in value after every halving. This increase in price is mostly due to the shortage of supply.
Some famous figures in the crypto world have predicted how high the value of Bitcoin will rise after the halving event.
The co-founder of Fundstrat Global Advisor, Thomas Lee, predicts that the price of Bitcoin would go up by 100% after the halving.
The CEO of Kraken is also optimistic about Bitcoin's price, rising to $100k after the halving. He predicts that bitcoin will reach either a $100k or $1m price mark.
Regardless of all the price predictions surrounding bitcoin halving, we will have to wait and see how the market will respond to the halving.
Facebook's very own cryptocurrency, which is scheduled for launch this year, has gotten the attention of regulators and the entire crypto community. This attention has served as a wake-up call to most countries as regards cryptocurrency.
It has now become more evident to governments that Bitcoin and other cryptocurrencies are here to stay and several countries have begun working on their own crypto projects.
For Instance, China has taken a step into the crypto world by digitizing yuan and adopting blockchain as one of its core technology investments. France, Lithuania, India, Indonesia, Tunisia, the European Union, and several other countries have begun creating their digital coin to be launched this year.
The Central banks of the world seem to have decided to use the name Central Bank Digital Coin (CBDC) for all cryptocurrencies to be launched with the support of the central banks.
The primary goal of creating the CBCDs is to get rid of the black economy and guarantee authenticity while achieving some level regulation. This development will legitimize Bitcoin and other cryptocurrencies as instruments of value transfer.
The central banks of Japan, the European Union, Switzerland, the United Kingdom, Sweden, and Canada have recently created a group with the Bank for International Settlements (BIS) to jointly research central bank digital currencies (CBDC). The purpose of this group is to conduct researches to study the possible use cases for the CBDC (central bank digital coin) in their respective locations.
Bitcoin adoption rate continues to increase at an incredible margin of about 700% in five years. Even at that rate, Bitcoin is still a long way from mass adoption.
2020 will witness massive adoption of bitcoin as various nations and industries, are starting to adopt bitcoin and other cryptocurrencies. For instance, the New Zealand government now allows companies to pay the salaries of their employees in BTC.
A lot of notable companies such as Facebook, Twitter, and Overstock have also begun to get involved in the crypto world.
Since the beginning of 2020, there has been a similarity between the price movement of gold and that of Bitcoin. The value of Gold and Bitcoin has been increasing significantly, one not far behind from the other.
The price similarity between both assets was noticed during the tension between Iran and the United States. During this period, Bitcoin secured its spot as one of the top "safe haven" assets.
The lightning Network holds the promise for cheaper and faster Bitcoin micropayments. The Lightning Network is a great way to improve the scalability of Bitcoin, and in turn, this will increase the adoption of Blockchain Technology.
The Lightning Network gained a lot of attention in 2019. Statistics show that merchant adoption of the Lightning Network payment increased significantly in 2019. Over 300 online stores now accept Bitcoin payment with the use of LN supported payment systems.
Despite the growth of the Lightning Network over the years, a lot of crypto exchanges like Coinbase, Binance, and Huobi are yet to adopt the technology. There would be an increase in the adoption of the Lightning network on a global scale in 2020, most especially by these popular exchanges.
Is Bitcoin set for another bull run in 2020? Will Bitcoin halving have a positive impact on Bitcoin's price like the previous halving events? Will nation governments and regulators finally gain more ground in the regulation of Bitcoin?
There are loads of questions left to be answered. And even though 2020 holds a lot of potentials to be a historic year for the crypto market, we will have to wait and see what the near future has in store for Bitcoin.
