As we have seen in 2019, cryptocurrency has taken the world by storm. More countries are starting to create (or have created) regulations for the use of this new digital currency. Last year, the trends involved security tokens, Jetcoin and institutional money. More institutions have come on board with investing in cryptocurrency. Hence, the increase of security tokens was warranted. Jetcoin is based on a cryptocurrency niche, in that it is a cryptocurrency coin just for the fans of athletes. The value of the coin is determined by an athlete’s popularity. The coin (JET) was created by Eric Alexandre in 2014. However, it is not for all athletes; the coin is limited to Alexandre’s pool of athletes. Also, there was an increase in the number of institutional investors since there was more cryptocurrencies and support. An example was the launch of Bakkt, a crypto platform for institutional money. These trends have given way to a new batch for 2020. Let’s take a look at the top four.
- Impact on Coin Price – According to Circuit City the Book, cryptocurrency prices increase when there are upgrades, whether to software, mining equipment or networks. For example, Bitmain has released the Antminer T17 and AntPool labs. Cryptocurrency networks that host additional applications can also see a positive impact on the platform and the token.
- Increase in Stable Coins — This is a new cryptocurrency class, in which the coins are attached to another stable asset (e.g. gold or U.S. dollar). Without this backing, crypto coins are subject to wild swings in value. This makes it difficult to use them in making daily purchases. Thus, most want to save their coins instead of spend them. Stable coins were created to change this behavior. Also, the more stable coins, the bigger the push for a mainstreamed decentralized internet.
- Government Support — Many governments are supporting cryptocurrencies by creating regulations. In fact, some countries have developed their own tokens. For example, Venezuela launched Petro earlier this year to bypass government control of money and as a protection against inflation and corruption.
- Corporate Giants Accepting Crypto — Many multi-billion dollar companies are getting into the crypto space by either accepting cryptocurrency (Microsoft) or creating their own. JP Morgan Chase (JPM Coin) and Facebook (Libra) have created their own cryptocurrency coins. This makes sense since these companies are involved with international trade and e-commerce. Thus, transactions would be more secure and faster.
As distributed technologies continue to reshape the finance industry, cryptocurrency will continue to flourish. People want a more efficient and secure way to make transactions, and their governments and major corporations have heard them. These new trends illustrate the major shift towards currency that is taking place in our digital world. It will be interesting to see how they play out.