While cryptocurrency and the blockchain have been in the public eye for a couple of years now since it exploded onto the scene, it is still a relatively new market. In fact, Bitcoin has only been around for about a decade, and many of the largest cryptocurrencies out there today are much newer. Most people have only known about cryptocurrency and the bitcoin exchanges for a couple of years at most, and many don’t even understand what it’s about. It still has a lot of room to grow.
As a result, there are still many developments taking place within the industry as it grows. But which of these recent developments are the biggest and could have the largest impact on the crypto market going forward? With that in mind, let’s look at a few of the latest developments in cryptocurrency, and if they have the potential to shake up the market.
The Upcoming Bitcoin Halving in mid-2020
One of the biggest developments in cryptocurrency is related to its most popular asset, the king of cryptocurrency. New Bitcoin is frequently created by miners. When they add it to the blockchain, they are rewarded with this coin. However, in an effort to keep a cap on inflation and ensure BTC remains relatively scarce, there is code within Bitcoin to halve the rewards every four years.
The last one happened in 2016, so we are at the edge of another halving in 2020, likely sometime in May or June. Once that day comes, miners who create new Bitcoin will only be rewarded half of what they get now. As you could imagine, this could lead to a massive change in the market. Previous halvings have initiated a ton of volatility in the space, and this year seems no different. Also, because supply is cut and demand has remained the same or grown, prices normally rise rapidly after a halving.
It remains to be seen what effect this event will have, but it will surely shake up the market in one way or another. This will be the first halving since Bitcoin and the rest of the crypto market really took off in late 2017/early 2018.
What Will the Introduction of Libra Bring?
While there are always new cryptocurrencies and blockchain projects being announced and coming out, one, in particular, has the attention of everyone in the market. That is, of course, Libra. It is an upcoming cryptocurrency coming from Facebook. It will be a stablecoin backed by real assets and is said to be coming no sooner than the summer months of 2020.
It has an impressive list of backers and supporters including Uber and Coinbase, but there is a ton of different uncertainties surrounding the currency as well. However, because of how massive Facebook is and how many people use it, we wouldn’t be surprised to see it becoming popular. It could also serve as an introduction to the cryptocurrency space for millions of people who are unaware of what it has to offer.
Even if the coin itself flops, it will be surrounded by important conversations about the space and increase public awareness of cryptocurrency, which should be a good thing. If the coin goes mainstream, it could be a changing of the guard in the space and usher in a whole new audience and market.
More Attention From the Government
Governments around the world already have the cryptocurrency space on their radar, and this could not only continue but get more intense. The growth in the space, and the fact that companies like Facebook are getting involved, is only going to lead to more attention and scrutiny from the government. While this isn’t necessarily a bad thing, it is yet to be seen the effects that it might have.
Many experts think that the regulations won’t hurt the industry, but that isn’t a given. It is nearly a given that the government will want you to pay taxes on crypto, but exactly how it will work or what other regulations will be in place is a mystery. Things like what governments decide to do, or how much they interfere, can shape and shake the market for years to come.
For example, some regulations that are very fair and supportive could actually help the industry grow much larger and become a more open and transparent place. However, the opposite is also true. If regulations are too strict and bog down the industry, many new crypto platforms, projects and even currencies themselves might not be able to operate effectively.
No one truly knows what will happen when governments around the world will start to provide more attention to cryptocurrency, but you can be sure experts are watching the developments closely as it could shake up the market in many different ways.
More and More Enterprise Adoption
As mentioned earlier, Facebook is getting into the cryptocurrency in a big way. However, they are far from being the only large company or enterprise adopting cryptocurrency in some way. Large and established enterprises are often very slow to adopt new technology like cryptocurrency until it shows incredible potential.
Well, they must be seeing the potential as many large enterprises are showing interest in the crypto space. Companies like Amazon, Google, and Oracle have their own teams and departments dedicated to blockchain and have been working on a number of different projects and services.
Many large financial institutions and banks could also benefit from using crypto and the blockchain in a number of ways. It will be interesting to see what the increase in enterprise adoption will mean for crypto and the market as a whole.
In conclusion, there are several different developments taking place in the cryptocurrency space, many of which have the potential to shake the market. The industry is still in its infancy, and will likely look much different in a couple of years.