Several elements will be able to influence the digital money sector in the next few months. Those mentioned, however, will be only some of the most important.
Halving
In May 2020, the most anticipated event from the entire market will start: the halving on Bitcoin. The process will halve the reward awarded to miners from 12.5 to 6.25 BTC.
In 2012 this same operation allowed the listing to take off from 10 to 100 dollars, while during the 2016 halving prices doubled around the $ 800 share in a very short time.
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The forecasts for 2020 on the cryptocurrency sector have made it clear: for the most optimistic halving will let us observe a new leap in the cryptocurrency that will drag behind the rest of its colleagues.
For the most skeptical, however, none of this will happen. According to them, as BTC mining becomes less lucrative (given the halved reward) demand will start to drop and so will the prices.
The arrival of Libra
2020 should also be the year of the now well-known Facebook cryptocurrency that will break into the market not before summer and, of course, only after having received all the necessary approvals.
Depending on its success, Libra could represent a real turning point by opening the doors to a generalized adoption of digital currencies.
Consolidation of the market
Some 2020 forecasts on cryptocurrencies have pointed the finger at the general conditions of the sector.
During 2019, the number of digital coins increased by another 2,300 units, according to data available. However, only a third of them managed to hit the $ 100,000 per day (volume) threshold. Add to that also that numerous cryptocurrencies are worth only a few cents.
The result? Although there are many more virtual currencies in circulation today, the total amount of capital flattened over the year. The market began to focus only on the most important cryptocurrencies which left hope for imminent consolidation.
The progressive interest of the authorities
In recent years, especially with the boom in late 2017, the global interest in cryptocurrencies has literally exploded. The demand for virtual assets has increased and authorities around the world have been unable to do anything but acknowledge them.
However, regulation has always been a rather thorny issue. In the coming months, any changes in this regard will be monitored carefully.
The 2020 forecasts on cryptocurrencies, therefore, will have to take into account all these elements