2019 has been another exciting, volatile year for cryptocurrencies. Prices have risen and fallen, while thrilling new projects have gripped our imagination. What can we expect to see from cryptocurrencies in 2020?
More Widespread Adoption
Brad Garlinghouse is the CEO of Ripple (XRP). He has predicted that the 20 biggest banks on the planet will start to use digital tokens. He also thinks that some countries will start to move towards a central bank digital currency.
This certainly ties in with the latest news stories. For a start, the People’s Bank of China has apparently drawn up plans for a digital currency. This would be called DCEP, and it has been suggested that it may be added to the existing cryptocurrencies in 2020.
Another prediction made by Garlinghouse is that some coins will disappear. He pointed out the world “doesn’t need 2000+ digital assets”. He doesn’t think that we will end up with just one coin. However, he believes that currencies that offer little value will disappear.
If fact, he stated that “99 percent of all crypto probably goes to zero”. Only those digital assets with a proven use case will survive in this situation.
A number of countries have made moves towards regulating the crypto industry this year. That is something that should continue next year, as more governments look to protect their citizens with clear legal frameworks.
It has been reported in recent days that a draft bill has been introduced in the US. This has been called the Cryptocurrency act of 2020. Reports suggest that Arizona congressman Paul Grosar is behind it.
This bill was introduced to the House of Representatives. If it goes through, it should make regulation of the sector a lot clearer. The proposed act would see a federal digital asset regulator appointed. It would classify assets as cryptocurrencies, crypto-commodities and crypto-securities.
Earlier this year, Warren Davidson backed the Token Taxonomy Act. Therefore, it seems likely that we see new laws on cryptocurrencies in the US in 2020. Other countries are also working on similar bills.
The Price of Cryptocurrencies in 2020
There is clearly a lot to look forward to next year. Of course, what most people want to know is what is going to have to happen to the price of Bitcoin and other currencies.
With so many diverse predictions, it is clear that no one can say for sure. Yet, by understanding the expected changes in cryptocurrencies in 2020 you can get a better feel for what will happen.