The cryptocurrency space is where everything changes in the blink of an eye. New technologies, major market players, and trends change much faster than any other industry. From the current point of view, several interesting developments appear to be applicable. However, this chaotic industry could provide more opportunities in the coming months, and anything we’ve seen before will be overlooked by something truly unique. However, let’s quickly verify that.
Transition to a cashless society
One of the most socially determined trends emerged unexpectedly in 2020. In the immediate aftermath of Christmas, despite the terrible news from China, the world seemed safe and secure. However, later in the winter, he was immediately caught by a virus threatening his life. The COVID-19 pandemic has crippled, disrupted and halted many industries and made people rethink their attitudes towards many things in life. Suspicious practices like offshore jobs or cryptocurrencies have become important and appear to have continued even after the end of the pandemic. Why work from the office when everyone can be managed effectively from anywhere in the world? Does it make sense to keep spending so much on luxury offices if it isn’t necessary in the digital age?
Besides, it is time to get off the cash – we must take a step towards a new quality of life. Meanwhile, the blockchain field is also booming as the new era demands more professionals in the distributed core technology space. In today’s world, applications for interacting with cryptocurrencies are becoming more and more complex and allow you to purchase digital assets with just one credit card. There is a demand for stablecoin wallets, and this apparent trend is no longer a unifying kind of millennials with a large number of organizations joining the club.
Encryption is no longer for nerds
The picture of the cryptocurrency around the world is changing faster than ever. Bitcoin (BTC) and Ether (ETH) are no longer a bubble as the market value of BTC is now higher than that of Coca-Cola and Intel, and the blockchain has been integrated into many areas and operations. In addition, the institutional affiliation of cryptocurrencies is on the rise as demand for bitcoin fluctuates in the midst of the coronavirus crisis and in the gray scale, there has been a sharp increase in assets this year. More hedge funds are rapidly accumulating digital wealth – and that’s guaranteed to continue this year.
Although Facebook-led Vågen still faces many hurdles for the US Securities and Exchange Commission and other regulatory bodies, the launch has been consistently delayed. Since it is doubtful to mix different monetary policies for the sake of the project’s success, we are not sure if Vaughan will see the light of day in his current state.
One thing is for sure: the world of regular users needs better interfaces to interact with cryptocurrency – and they are coming. The digital divide is shrinking regularly as it will be easier than ever to open a checking account in dollars or euros in 2020.
The increasing prevalence of DeFi
Decentralized Finance, or DeFi, has been one of the most visible trends in cryptocurrencies since late 2019. The sector has grown rapidly over the past six months, and the sector recently reached a new stage where the total value in DeFi was determined. It achieved a staggering new high of $ 4 billion.
Several blockchain companies have already offered their DeFi products. Popular protocols such as Compound, Balancer, Curve, and other platforms have opened the door to a whole new world of cryptocurrencies for investors looking for high liquidity, various measures of risk reward, and exciting and affordable modern financial instruments.
We are in the process of further implementation alongside a growing user base as institutional capital comes into the digital asset space. DeFi is growing insanely fast, and it is imperative for this sector to have a simple, effective and low-cost solution.
Today, central bank digital currencies or central bank digital currencies are either a hot topic of conversation or a solution being developed in many countries. China, one of the world’s largest technology investment regions, has begun to help build domestic digital assets. It will be interesting to see how the launch and adoption of the digital yuan can reshape the cryptocurrency, alter the balance between economic strength and deny the dollar its status as a global reserve currency. Could this example inspire other pioneering countries? This area can be very competitive.
Stable currency initiatives are still undervalued globally – most cryptocurrencies are subject to volatility and counterparty risk. In the future, global or domestic banking-led projects will not only be implemented in space, as private companies continue to grow. Projects like USD Coin (USDC) and Paxos S.