2019 was a pretty fantastic year for Bitcoin’s price, and with the digital assets start to the new year going off with a bang, it’s time we look into Bitcoin’s future. So, what can we expect from the rest of the year? Here are 5 Bitcoin trends you need to know about in 2020.
5. The Bitcoin Halving
The next Bitcoin halving is coming up in May, and is likely to herald a bull run for the coin later in 2020 or 2021. This topic is a major one in the community, because halvings have historically anticipated a bull run for the coin. In 2013, Bitcoin reached $1000 (the ATH at the time) following the halving in 2012, and in 2017 it reached its ATH to date following the halving in 2016.
One industry exec has already predicted that Bitcoin would reach $50,000 by the end of 2020, thanks to the halving event. Bitcoin halvings typically affect the price of Bitcoin, as well as mining reward, hash rate and inflation rate.
4. Bitcoin to become digital gold
Bitcoin has been called digital gold for a while, but 2019 was the year when it really started to set in as an idea. In fact, the idea of Bitcoin becoming digital gold became so popular Brad Sherman, a US congressman, claimed that the coin could become a threat to the US dollar’s dominance in the global financial markets. This wouldn’t necessarily be a bad thing, especially considering how the US weaponizes its currency against countries that don’t conform to its foreign policy.
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3. Schnorr, Taproot, and Tapscript
Bitcoin is set for a soft fork in Q4 of 2020. This is a seldom occurrence, as Bitcoin forks far less often than other cryptocurrencies. Schnorr, Taproot, and Tapscript will be included in the upgrade to the Bitcoin network. A finalized proposal for these improvements will likely be ready this year, and developers are already in the process of reviewing code related to these updates. They are expected to enhance the privacy, smart contract functionality, and scalability of the blockchain.
2. Adoption of the Lightning Network and Liquid Sidechain
The lightning network has so far not enjoyed as much popularity as developers had hoped. In fact, it’s still far from mainstream adoption. It’s been hailed as a solution to Bitcoin’s many problems – including being hyped as a solution for making faster and cheaper micropayments on the blockchain.
The lightning network has been in the general Bitcoin lexicon for a long time, but it may be the Liquid sidechain that takes the spotlight this year. Liquid may help lower congestion on the base Bitcoin blockchain, particularly in a situation where speculation around Bitcoin’s price is growing thanks to the halving.
1. Institutional Investment
The final Bitcoin trend out of the 5 Bitcoin trends you need to know about in 2020 has to do with institutional investors. Namely, the mass adoption of the coin by them. This isn’t something that happens all at once, but it’s definitely getting started. 2019 saw the SEC approve the first ’40 Act-regulation Bitcoin fun, which shows that a Bitcoin ETF approval could be imminent. Furthermore, Grayscale recently announced that $600 million in new money from investors flowed in predominantly from hedge funds.
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— Grayscale (@GrayscaleInvest) January 29, 2020
Bitcoin trends for the future
The 5 Bitcoin trends you need to know about in 2020 prove that we’re heading into a very exciting space. The Bitcoin scene is growing by the day, and these trends prove that we could be edging towards mass adoption in the near future. Will Bitcoin go to the moon later this year? That remains to be seen, but we certainly can look forward to an action-packed start to the decade.