5 things to look out for in Bitcoin 2020

5 things to look out for in Bitcoin 2020

In 2019 Bitcoin value grew substantially, as the crypto assets roughly doubled during the year. Even though Bitcoin dumped heavily over six months of 2019, it’s started off 2020 with a bang.
So, what should happen in 2020? What’s the future of Bitcoin? According to 4c-trading.com, these are the main storylines that would surface in the upcoming year.

1. Bitcoin Halving 2020

The subsequent Bitcoin (BTC) halving is in all likelihood to happen in May 2020. It could have a dramatic impact on the Bitcoin price.
It will happen in the week starting on 18 May 2020, when the quantity of blocks hits 630,000. It will see the block reward tumble from 12.5 to 6.25 bitcoins. The definite date of the halving isn’t yet known as the time taken to create a new block varies, with the system averaging one block like clockwork.

A Bitcoin halving (also known as ‘halvening’) is an occasion where the prize for mining new blocks is halved, which means miners get half fewer Bitcoins for verifying transactions. Bitcoin halvings are planned to happen once every 210,000 blocks – generally at regular intervals – until the final 21 millionths Bitcoin has been created by the system.
Bitcoin halvings are significant occasions for investors and traders since they lessen the number of new bitcoins being produced by the system. This restricts the supply of new coins, so costs could rise if demand stays solid. While this has occurred in the months when past halvings – making bitcoin’s value rise quickly – the conditions encompassing each dividing are extraordinary, and interest for bitcoin can change uncontrollably.

And how will that affect the Bitcoin price? Well, predictions differ from 50 to 100k in the very next years. Will that happen? We are careful with such statements because we now have a “futures trading mechanism” that can suppress any price. As usual, time will tell.

2. Bitcoin’s Transition to Digital Gold

Bitcoin has been alluded to as digital gold for several years. However, 2019 was the year when that idea turned out to be considerably more practical, as per information from the most recent a half of the year. Even U.S. Congressman Brad Sherman (D-CA) warned that Bitcoin might be a risk to the U.S. dollar’s predominance in the worldwide economy. Well, how about that?

In 2020, the resemblance of Bitcoin to Gold started to mount as soon as the tension between the United States and Iran began to grow. Notwithstanding, longer-term estimations of the relationship among Bitcoin gold still show there is a feeble connection between these two resources.

Yes, there is still a lot of work to be done here. The digital gold use case is often referred to as Bitcoin’s core value proposition, so a closer correlation with physical gold could indicate a higher level of understanding and acceptance of this point from market participants. Additionally, the introduction of central bank-issued digital currencies could clarify the value proposition of something like Bitcoin in the minds of the general public.

3. Lightning Network and Liquid Sidechain adoption

Improvements for the base Bitcoin protocol are also on the way. The Lightning Network has been advertised as an answer for quicker, less expensive Bitcoin micropayments for several years now. However, there is also and Blockstream’s Liquid sidechain. Although the Lightning Network has seen a more prominent degree of recognition so far, it might be Liquid that takes the spotlight in 2020. Because of the enormous measure of centralization of Bitcoin transactions around exchanges, Liquid could be useful in bringing down congestion on the base Bitcoin blockchain because there is a lot of speculation on the Bitcoin price due to the halving.

There is also a belief among many Bitcoin evangelists that innovations like side-chains and the Lightning Network will eventually send the price of altcoins to oblivion. Mind you, the whole altcoin market as a whole is down quite substantially against Bitcoin over the past two years.

4. Tapscript, Schnorr, and Taproot. What are those?!

Those names may seem weird, but you will hear about them in 2020. For some good reasons, Bitcoin does not see many upgrades, but a significant change will happen soon.

All those upgrades mentioned above will happen as soft-forks of the Bitcoin network. Still, currently, developers are reviewing code related to these potential alterations. Improved privacy, smart contract functionality (finally), and general scalability of the Bitcoin network are the significant advantages and long-awaited features expected from everyone.

5. Institutional Money incoming

Adoption by institutional investors is one of those adoptions we are longing to see. It may not be the anticipated general adoption of crypto. Still, this specific one has been hyped for many years, but this is not something that happens overnight.

In 2019, we saw the SEC endorsement of the initial ’40 Act-managed Bitcoin subsidize, which has driven one examiner to accept that a Bitcoin ETF endorsement could be practically around the bend. Also, a few reports as of late declared infusion of over $600 million in new cash from financial specialists (generally from mutual funds). There was likewise an overview that found that money-related counselors and some banks might be expanding the introduction of their customers’ assets for Bitcoin and different digital currencies this year.

So, here we are… At the beginning of 2020, we are looking at Bitcoin with hope and trust as never before. The worst has already happened, and we are all prepared for the best things to come.

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