Bitcoin is the favorite cryptocurrency of all time but over time the value has stagnated. If you look at the Bitcoin price today, you will find that the price is static. The current price is $11,840 with a minor 0.75% dip since yesterday. However, don’t cut your hopes as the crypto market capitalization chart sees some positive changes. The beginning of 2019 was amazing for Bitcoin holders. And they also saw a huge setback in the second half of the year. But the year 2020 looks promising. So, here are five major trends to look out for Bitcoin. You can also take a look at crypto-charts website to understand the Bitcoin trend over years.
Top 5 trends that will change the cryptocurrency market in 2020
- Bitcoin Halving
The key aspect for Bitcoin to be bullish is the Bitcoin halving. This is a schedule adopted by the Bitcoin to half the generation of Bitcoin. This occurs every four years roughly. This is a great strategy for cryptocurrency developers to increase the demand for Bitcoin. The schedule involves halving of the newly generated Bitcoins by half every ten minutes. So, instead of 20 Bitcoin generated in every block, 10 Bitcoins will be generated. In the next, ten minutes, it will reduce to 5, and so on.
However, there are split opinions on this strategy in the crypto market capitalization community. But this has proven to be pretty effective in appreciating the cryptocurrency value and the asset price.
- Transformation to digital gold
For over years, Bitcoin has earned the name of being a digital gold. Although started as a meme, the cryptocurrency has seen transitions similar to that of gold. The concept of Bitcoin becoming digital gold grew firm and prevalent. To this, Congressman Brad Sherman remarked that cryptocurrency can become a threat to US Dollar’s dominance in the global economy.
Moreover, at the beginning of 2020, there were found similarities between the pricing of gold and Bitcoin. However, there are no strong correlations to back the theory. But the use case is used for the core value proposition by Bitcoin. And the introduction of bank-issued digital currencies will change the fate of cryptocurrency markets.
- Bitcoin upgrades
Bitcoin hasn’t seen many changes unlike some of its competitors. But 2020 can bring some revolution in the old technology of Bitcoin. A major change is expected with the introduction of Schnorr, Taproot, and Tapscript. Currently, developers are reviewing the code and making room for the upgrades to occur in their nodes. This will change the face of the crypto market capitalization chart and improve privacy.
We are expecting the incorporation of a few more functionalities like the contract functionality and scalability. Once the bugs are fixed, the developers will roll out the beta version for testing. This will enhance the overall value of Bitcoin in the market. For more info, you can visit the website.
- Sidechain adoption for Bitcoin
Developments above the base algorithm are also taking place. The industry has seen liquid sidechain growth. It helps in providing faster solutions and cheaper micropayments. The lightning network was already added to Bitcoin’s portfolio and it has enjoyed the celebratory attention. However, with Liquid sidechain in action, Bitcoin will again see the uphill in 2020. This sidechain will prove to be efficient in reducing congestion during transactions.
- Institutional investment
The final trend to watch is the institutional investment. It will shake the whole cryptocurrency market as SEC approval will allow Bitcoin to become a legal digital currency. Institutional adoption has been rumored around for years but you don’t expect to see that overnight. But with SEC approval of the ’40 Act-regulated Bitcoin fund, Bitcoin will definitely see a surge in its price. So, 2020 is a great year to mine Bitcoin for the users. The beginning was promising and the end is anticipated with the rise of shares and stock unit prices.