Cryptocurrencies are nothing new and have become firmly established in our society. Whether you like to make money from investing in them, pay for goods with them, or simply keep track of them in the news, they are becoming more common in daily life. Bitcoin is still the premier coin for many and has really come on since being invented in 2008. Although the back end of 2019 saw the market tail off somewhat, bitcoin’s price roughly doubled, which was a welcome return to form after 2018.
What does this mean for 2020, and what might we expect from bitcoin?
Bitcoin to have a good year
Many crypto experts predict that we can expect to see bitcoin have a decent year again and maybe even enjoy bigger success. This could push prices up to the levels last seen in 2017 and even beyond. Already, it has started off 2020 well, and this could be the signal for traders to expect a good year for bitcoin ahead. To take full advantage of these potential opportunities, many traders will use Bitcoin Trader software to make money from bitcoin in 2020.
Will large financial institutions get more involved in 2020?
A key part of bitcoin’s rise to respectability and wider use has been the acceptance it now receives from many institutional investors. This is actually something that has been slowly happening for the last few years, but 2020 could see it really gather pace. Of particular note is the possible creation of a bitcoin exchange-traded fund now that the US Securities and Exchange Commission has approved the ‘1940 Act’ regulated bitcoin fund. It is also reported that a huge $600m from hedge fund investors is ready to hit the market in 2020.
Halving event in 2020
One thing that traders can definitely expect and that is predicted to have a positive impact on bitcoin’s price is the May 2020 halving event. The last time that this happened in 2016, it helped bitcoin rise and this could mean that it will happen once again. The halving event is a pre-planned occurrence that seeks to regulate the amount of new bitcoins being produced by halving the subsidy that miners are given for them.
Why does this matter? In simple terms, it will help to control the supply of coins to market, which will then make the demand greater – this is good news for the bitcoin price and also for people who have coins to sell. Some crypto experts are even suggesting that this event could see the price per coin soar up to $50,000.
(Image from Pixabay)
An increased popularity for safe haven investors
2020 is likely to see more upheaval on the global political and financial stage. With the Middle East still being a cause for concern in geopolitical terms and events such as the US-China trade war showing what may crop up in 2020, many investors are looking for safe haven assets. These are not traditional currencies, which can be greatly affected by world affairs.
Gold has usually been where investors move their money in uncertain times, but bitcoin could become a more popular choice in the next year. This had already taken place somewhat in 2019 with more people investing into bitcoin, but many think that this could gather pace in 2020.
Upgrades to network
The halving event is not all that is planned for bitcoin’s network in 2020. Users can expect to see a serious upgrade to how the coin works, which is based around a fork in the currency itself. New underlying codes such as Taproot and Schnorr are set to be activated by bitcoin nodes in the next 12 months. The new changes are likely to see increased security along with extra functionality for smart contracts and the ability to scale up the whole network to a greater degree.
It is also to be expected that changes will be made to the top layer of how bitcoin works. The major thing to look out for is the adoption of the Lightning Network. This is said to promise a faster and less expensive method for bitcoin micropayments. While this may not be imminent in the early part of 2020, it could come into play during the latter half of the year.
2020 set to be an interesting year again
While concrete predictions are always hard to get right, 2020 will most likely be a thrilling ride for bitcoin. With a strong bull run being expected and a strong start to the year, it could use the halving event in May 2020 to really push on. If you are planning to invest in this coin or you already do, then getting a handle on what could happen is wise.
