June 21, 2020

Some Reasons Why 2020 Is An Explosive Year For Cryptocurrencies

In the financial field, a topic that has aroused a lot of interest in recent years is Bitcoin, which has gained a lot of importance, given the enormous value accrued in a short time, rising from 500 to over 15,000 Euros, and then falling back to around 3,500 EUR. All these oscillations, if exploited properly, can bring excellent earnings, as in one day you get to have oscillations of the value of a cryptocurrency even of 25%, all know how to make the most of them.

Moreover, it has been possible to exchange bitcoin futures securities for less than a year. Futures, for the uninitiated, are nothing more than contracts that allow any investor to “bet” on the trend of the value of almost anything, but are mainly used for raw materials on a regulated market. In the case of Bitcoins, you bet on the trend of the value of Bitcoins.

Closed this short parenthesis, open to making you understand the importance that cryptocurrencies are acquiring, we will now go into a detailed look at everything related to Cryptocurrencies, of which Bitcoin and many other electronic coins are part and on which it is better to invest and how to do it, as there is a lot of confusion and not everyone understands the difference between actually buying a cryptocurrency and instead of trading on a cryptocurrency, which does not mean owning it. The buying and trading of bitcoin can be performed on Bitcoin-Fortress.

Reason 1: more and more initial coin offering (ICOs) will be launched

Crowdfunding, i.e. fundraising, has become increasingly popular in the world of cryptocurrencies. Crowdfunding is presented in the form of Initial Coin Offerings (ICO). With the ICO, startups, and companies offer tokens against money to finance the project, therefore everything happens in exchange for digital coins, mainly Ethereum, EOS, and Tron.

With an exponential increase in ICOs in recent months, regulatory bodies are now looking into ICO projects to prevent scams, which are increasingly in this sector. As you can see, more and more ICOs are launched and offered in exchange for Ether and Bitcoin, so this will indirectly affect the price of these two cryptocurrencies. Ethereum’s price will rise by the end of 2020 and its market capitalization may rise to $ 100 billion. The Facebook coin will be a cryptocurrency indexed to a basket of stable fiat currencies.

Reason 2: increased adoption of SegWit

In the past few weeks, commissions for Bitcoin transactions have dropped to $ 1 for medium-sized payments, although the size of Bitcoin mem pools remains above 120 million bytes. Exchanges that have not adopted the SegWit protocol continue to pay $ 30 for medium-sized transactions.

Recently, Coinbase and Bitfinex announced that they have implemented the SegWit protocol with the aim of reducing transaction fees and reducing the time spent on each transaction. BitGo, a multi-signature security provider and Blockchain technology company, also announced that they have been able to increase the size of the Bitcoin blockchain to 2 MB thanks to the integration of SegWit into the BitGo wallet.

Reason 3: cryptocurrencies and ICOs will be regulated

Experts believe that in 2020 governments will increase control over cryptocurrencies and the ICO market. Transactions with Bitcoin are already prohibited in countries like Bolivia, Ecuador, Iceland, Morocco, Nepal, Malaysia, Indonesia, and other countries. With the aim of centralizing the cryptocurrency market and preventing scams, the governments of several countries have issued their own cryptocurrencies or approved new rules on cryptography.

On December 4, 2017, UK and EU financial regulators planned to pass a law under which cryptocurrency traders and investors will have to disclose their personal information when trading cryptocurrencies. The People’s Bank of China has launched its national cryptocurrency which serves as legal tender currency. Venezuela launched its own cryptocurrency – El Petro, and its stocks of national resources, such as oil, gold, and diamonds, would support El Petro.

Reason 4: institutional investors are entering the emerging cryptocurrency market

The safest way to trade cryptocurrencies is to use a reliable service such as IQ Option or BdSwiss. If you are not yet registered on either of these two platforms, here are the links with which you can access the services for free and start with the demo.

About the author 

Imran Uddin

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