Cryptocurrency Trends To Watch In The Coming Year
The encryption trends to see during the coming year
The world of cryptocurrency has raised and low in the roller coaster in the last decade, and the prices have fluctuated wildly on the basis of market feelings and technological progress. When we enter the new year, experts provide important trends that will shape the future of this space. In this article, we will examine some of the most exciting trends in cryptocurrencies to see next year.
1. Increased adoption of institutional investors
Since institutional investors such as hedge funds and pension funds become more comfortable with cryptocurrencies, their investment portfolio is transferred to digital property. This increased adoption should increase the demand for cryptocurrency, resulting in prices and an increase in market capitalization.
According to Deloitte, the total value of cryptocurrency belonging to institutional investors reached $ 143 billion in 2020, which represents only $ 2020 billion in 2017. As more and more institutional investors enter into Space, their share increases and with them is an increase in liquidity and market activity.
2. growing adoption in usual companies
Cryptocurrencies are no longer only for enthusiasts; The main companies are starting to adopt them as a means of increasing efficiency and reducing costs. Companies like Microsoft, IBM and Amazon have already installed cryptocurrencies in their payment systems or use them as an alternative to traditional currencies.
The growing acceptance of cryptocurrencies among the main companies will result in significant growth rates, which will facilitate the participation of individuals in space. As more and more companies follow, we can expect to see an increased interest in consumers in these types of transactions.
3. Increased accent on decentralized finances (dead)
Decentralized (dead) finances are a rapid growth segment on the cryptocurrency markets. Define the platforms allow users to borrow and borrow a cryptocurrency without the need for intermediaries, reduction in transaction costs and increase liquidity.
According to the Chainlysis report, the definition increased by 400% in the fourth quarter of 2020. Compared to the same period last year. This growth is expected to continue during the new year, and more certainly the platforms are launching, and those existing which expand their offer.
4. Translations in the currency of digital currency (CBDC)
Digital central bank currencies (CBDC) are attracted because governments around the world are starting to explore their potential advantages. CBDCs could revolutionize the way we think of money, providing a digital alternative to traditional fiduciary currency and potentially reducing transaction costs.
The European Central Bank has already launched its own CBDC entitled E-CUR / EN, which is currently in beta. Similar projects are underway in other countries such as Japan, China and South Korea, which clearly indicates that CBDC becomes an increasingly popular solution for governments that wish to reduce their dependence on traditional currencies .
5. Increased regulation
As cryptocurrencies are more accepted, regulators around the world are starting to notice it. Governments break unregulated exchanges and institutional investors need more strict regulations.
The Commission of the American Commission (CFTC) announced a declaration which required increased transparency of cryptocurrency transactions, while the administration of the EU value market is launching a new regulation aimed at protecting investors in CRIPTO currency.
6. Safety security agentation
The threats of cybersecurity in the premises of cryptocurrencies are increasingly pronounced, and the hackers were targeting exchanges, wallets and individual users.
Leave a Comment