Over the last couple of years, cryptocurrency has emerged into a real financial ecosystem. The current outlook for digital currencies looks promising for investors, as a safe haven in times of crisis.
In 2020, the digital asset market has seen many reversals, especially with the unexpected swings in the price of Bitcoin (BTC). Cryptocurrencies have forged their path and evolve at a dynamic pace throughout the year. Here are several points that summarize the cryptocurrency market’s state in 2020. Also, we give you an outlook for the crypto market’s future.
Cryptos in 2020: A growing market but with strong disparities
Technical, sophisticated and too complex for some, innovative and opportunistic for others, cryptocurrency remains an excellent investment in 2021. However, this technology represents a vast market fueled by the emergence of countless assets, valued by hundreds of billions of dollars.
Since cryptocurrency technology has gained notoriety, dozens (if not hundreds) of digital currencies have emerged and are traded. However, only a handful of innovative crypto assets enjoy high adoption, creating big lags in market capitalization.
For the year 2020, the main crypto-currencies have reached new valuation records like this ranking on the CoinMarketCap site, putting Bitcoin in the lead with more than 290,035,333,189, followed by Ethereum (ETH ) ($ 51,388,075,161), Tether ($ 17,274,205,577), Ripple (XRP) ($ 11,463,993,868) and finally Bitcoin Cash (BCH) ($ 4,978,116,584).
Cryptos 2020: Bitcoin in great shape
Bitcoin is now on everyone’s lips as the most expensive digital asset in history with a price of around $ 15,000 on crypto platforms.
We can explain this phenomenon by the lockdown measures. Since these were implemented in several countries of the world, it pushed investors to stay at home, making them better able to experiment with this new currency which is all the rage.
The question arises as to whether this tendency will continue. Indeed, cryptocurrencies are not subject to the market’s harsh laws and economic indicators, unlike standard currencies. On the contrary, they enjoy freedom in the face of economic conditions and are completely independent of business guesswork.
With more than 300,000 transactions per day, Bitcoin is the most popular currency of all cryptocurrencies. It also has a rapid recovery capacity. Besides, initiatives accelerating its development are increasing, such as with Facebook’s Libra.
At the same time, for the last twelve months, Bitcoin, the leading cryptocurrency, boasts of extreme stability, showing a variation of + 0.7%. This trend is also confirmed with other crypto-currencies. The number of transactions increased by nearly 20% in the first months of the global pandemic.
In 2017, booming cryptocurrency market trends notably propelled Bitcoin investments (which had approached the threshold of 20,000 dollars/token) before experiencing an unprecedented collapse. Over the next several years, Bitcoin attempted a “crypto winter”. It only managed to achieve a steady growth rate in 2019.
In 2020, Satoshi Nakamoto’s currency also encountered rough edges by playing acrobats around 10,000 and 11,000 dollars in September. However, investors’ perseverance has managed to straighten the bear market to reach 15,000 dollars/token, a trend that should continue until the end of 2020.
In conclusion
Indeed, the main obstacle to expanding these currencies is the public’s mistrust of these means of payment. Large tech groups tend to support specific cryptocurrencies, thereby increasing their use. Growth in cryptocurrency users depends on many variables. We can still expect double-digit growth in the coming years, as the blockchain’s potential is proven with different applications. And while gold struggles to pull through, cryptocurrency is shining despite the health crisis and promises to become a benchmark for investors worldwide.