Two years ago, Bitcoin reached stratospheric heights. In the years since the cryptocurrency market has undergone a significant correction. Industry-leading aficionados have termed it a bear market for crypto, as speculators tapered expectations during a strong consolidation of the industry. The period 2018 – 2019 was characterized by bearish trends and fewer ICOs than the crypto heydays. One thing we have all come to learn vis-a-vis the cryptocurrency markets is that extreme volatility is an inherent feature of Bitcoin, Litecoin, Ripple, Ethereum, and other altcoins. This bodes well for traders who benefit from whipsaw activity on pricing, generating profits on put and call options.
Looking ahead to 2020, opinions are split between those who believe that another rally is on the cards and those who forecast prolonged bearish trends. Already, interesting developments have taken root in the global markets, including the introduction of digital currency options in gaming, AR, and VR, in addition to increasing regulation around the world. Leading industry players in the financial arena are gradually warming up to blockchain technology and its applications in the markets. Now that the mass-market has become accustomed to cryptocurrency terms like ‘blockchain,’ ‘decentralized exchanges,’ and ‘cryptography,’ there is greater acceptance among people. Greater exposure to blockchain technology bodes well for the future of this cost-effective, seamless, fully integrated, online solution. While the technology behind blockchain is complex, a rudimentary understanding thereof goes a long way.
Digital Currency Purchases Through ATMs
Many folks eschew the digital currency market because they don’t understand how to get involved in it. The requirements for registering at a cryptocurrency exchange, trading at a brokerage offering digital currencies, purchasing a hardware crypto-wallet, or cloud-based wallet are a little off-putting to new users. However, many people warmly embraced the concept of being able to purchase Bitcoin with a fiduciary currency like USD, GBP, EUR, JPY, and CHF, et cetera. The option to do so via ATMs is certainly attractive to newcomers and existing proponents of cryptocurrency trading and investing. The increased prevalence of decentralized networks that can transform transparent protocols without intermediaries, DeFi is fast gaining momentum. These P2P exchanges are increasingly prevalent in currency exchange operations. Users will be able to exchange digital currency for cash, anywhere easily, and at any time.
Crypto Moving Closer to Large-Scale Adoption
Evidence of the growing adoption of digital currency options is ubiquitous, with several countries have announced plans for the development of state-regulated digital currencies. These include France, Russia, Estonia, Japan, Sweden, and Dubai. The shift to digital currencies is real and will certainly accelerate in 2020. In the business arena, many large-scale conglomerates are seriously considering their own form of digital assets, including Mitsubishi, JPMorgan Chase, Amazon, and Walmart. The benefits of increased adoption in the business sector are immediately apparent in the private sector which takes its cue from multinational corporations. As more companies switch to crypto, so more adoptees populate the market.
Increasing Compliance with Regulatory Standards & Tax Authorities
While everyone tends to hail the privacy and anonymity features of Cryptocurrency, governments are having none of it. The US government, in particular, has been working feverishly on projects to create powerful analytical tools designed to unmask privacy-based cryptocurrencies such as ZCash and Monero among others. Increasing regulation on a global scale is commonplace. This is a particularly important development in the crypto arena, given that it will lead to the shuttering of many unlicensed, unregulated, and illicit activities that are currently taking place through cryptocurrency exchanges all over the world. The regulation will ensure that exchanges and their clients are fully compliant with the reporting requirements of the tax authorities.