The Covid-19 pandemic has been a deadly storm to the economies and businesses all over the world. The global economies have trembled. The Washington Post reported in early March that nearly every asset – bonds, oil, stocks, and gold have been under siege.
As soon as the pandemic strengthen its roots, it has been noticed that crypto markets were tumbling into an extreme panic. During the outbreak that led to panic, Bitcoins were oversold.
As estimated, $93 billion was wiped out from the markets, resulting in a 48% plunge in Bitcoins prices.
But the Bitcoin giant, Tim Draper says that it would be Bitcoin and not any banks and governments that would save the day. He believes that the prices of Bitcoin would reach an all-time peak of $250,000 by 2022.
How Is Bitcoin Halving in 2020?
Bitcoin halving is an event or a gathering of all the Bitcoin giants. It happens every four years, in which halving the rates has been done. The Bitcoin halving of 2020 happened in May. In the past, Bitcoin prices have been increased due to demand and supply and resulted in two different situations.
- The first is that the supply is high, and the demand is low, which leads to a decrease in prices of the product or asset.
- The second is the low supply and increased demand, which also led to increased asset prices.
Bitcoin and its subsidiaries have been facing challenges since the start of the pandemic. But, there were hopes that this new halving will unfold better steps.
But people are just hoping for the better while ignoring the complete fact that the past two halvings have raised a situation of doubts and questions around the Bitcoin. Unlike the past, today’s people are restraining themselves from investing in the cryptocurrencies and are not sure to support it.
Five Trends That Can Rescue Bitcoin In 2020
Although, this year has been the way Bitcoin owners have expected it to be. The downfall and the increased withdrawals have measured massive cut. But, some trends would help digital currencies in 2020.
1) Stability With the Libra
Facebook, the social media giant, has stepped in and announced a bold decision to introduce its cryptocurrency. This could be a new dawn for cryptocurrency as Libra; the Facebook-led cryptocurrency, is a heated topic in crypto markets.
The user base of Libra is certain because of the massive users in the US. Facebook’s omnipresence has smoothened their way to the adoption of Libra.
It is expected that Libra will mark well the cryptocurrency mainstream, and other giants may follow them too.
2) Transitioning To Digital Gold
Bitcoin has also been taken as digital gold for quite some time. Bitcoin’s idea as digital gold became incredibly essential and prevalent in 2019 that US Congressman Brad Sherman claimed that cryptocurrencies would be a great threat to the US’s dollar.
People saw a magnificent surge in Bitcoin’s transitioning to digital gold. In 2020, Bitcoin owners and investors believe that Bitcoin could still be rescued by transitioning to digital gold.
3) Strengthening Decentralized Finance (DeFi)
In 2008, when the great economic depression had severely hit the world, Bitcoin was introduced to motivate people to connect around the world’s first cryptocurrency.
The experts believe that the same thing is happening again, as Bitcoin is rising after the night. The new adoption and initiation of decentralized finance (DeFi) are considered as the most significant cryptocurrency trend this year.
DeFi system will introduce;
- It offers permissionless transactions and openness with the removal of intermediaries.
- Composability will provide a sophisticated online financial plan.
- Security, trust-lessness, and transparency would increase for good.
4) Adoption of Liquid Sidechain
There are continuous developments in layers of Bitcoin protocol. There is a Lightning Network that has been providing faster and cheaper Bitcoin payments for many years.
In 2020, Blockstream’s Liquid Bitcoin sidechain has seen massive growth and can be a way-out for these circumstances. But that has to deal carefully, keeping all the things and security protocols.
The lightning network was of significant spike and considered of great benefits. Still, the experts are saying that this year Liquid may take all the limelight because of the large amount of centralization of Bitcoin transactions around exchanges.
5) Staying Intact With The Closed Economies
It is expected that Bitcoin will prevail in these challenging times as it has proven to be resilient.
The global economies are much disturbed, and Bitcoin prices are likely to bolster with closed economies such as China or Iran.
People protect their wealth by purchasing Bitcoin, which could be a stable factor for Bitcoin.
The future is uncertain for all businesses and investors. Bitcoin was in the fall, but these trends could be a silver lining.
These trends could take Bitcoin out of the swamp and give them sustainability.
Samantha Kaylee is an Assistant Editor at Crowd Writer, a 5-star platform that provides thesis writing service at the best price. Over the years, she has worked with positive and leading minds and has excellent market analysis and technological coverage knowledge. She loves to read and write.