The festive season is almost underway. It is almost too soon to start looking beyond that and summoning some cryptocurrency foresight. But as any good trader will always tell you to be prepared, we investigate the new year to see three things that the cryptocurrency market has in store for 2020.
Facebook is Pushing Ahead with Libra
The first big thing to expect next year is that Facebook are still poised to launch Libra in 2020 despite a whole host of setbacks.
There is still a lot of hesitancy in the wider cryptocurrency market about Libra and Facebook themselves have been dragged before congress to explain what they’re planning to do with the currency.
One thing is certain, IF Facebook does push ahead and launch Libra it is going to disrupt the cryptocurrency market in ways that other coins couldn’t even dream of. It could create a mass exodus from mainstay cryptocurrencies like Bitcoin and it could also mean that cryptocurrencies in general become super regulated.
Facebook and Libra represent a big unknown quantity to most cryptocurrency traders, and it goes without saying this isn’t good for market value as a whole.
Countries Will Launch Cryptos
Many economic powers have been waiting on the side-lines and feeling out whether the cryptocurrency market is a fad, scam or whether it will stand the test of time. For the most part, cryptocurrencies have held their own and stuck around longer than most initially expected.
Venezuela launched a cryptocurrency called Petro which is a state asset-backed token, although many other countries believe this is a scam to try and generate income and prop up the Bolivar.
Recently other countries have made steps toward introducing their own cryptocurrencies and 2020 could be the year that China releases its own state cryptocurrency. There are also other economies around the world looking to free themselves from hard currency and would welcome the opportunity to launch their own cryptocurrencies.
This means 2020 could take cryptocurrency out of the private sector and place it firmly on the FOREX markets.
Always Expect Regulation
The words cryptocurrency and regulation are rarely uttered together but the expectation is that with economies becoming more welcoming to cryptocurrency that regulation will soon follow. In many ways, regulation has kept cryptocurrencies on the fringes, with some countries even banning cryptocurrencies altogether.
Don’t mistake this for a permanent decision. It is likely that countries will relax their attitude to cryptocurrency which will have a positive impact on the market. At the same time though, regulation will be introduced in ways that cryptocurrency traders will bemoan.
Currently the tax status of cryptocurrency in many jurisdictions is hazy at best, the expectation is that 2020 will be a year of tighter controls and more taxation for traders. Mainly because this type of regulation has been predicted for years and so far, cryptocurrencies have steered clear of it.
It is only a matter of time though.