In the last few years, Cryptocurrency market has been developed and garnered a lot of attention from prospect users. Various numbers of trends have influenced the adoption of the digital currency. People might use cryptocurrencies for fast payments and to evade transaction fees. Some might get cryptocurrencies as an investment, hoping the value goes up. The value of a cryptocurrency can change by the hour.
According to Cambridge Centre for Alternative Finance (CCAF), approximately 3 million people are actively trading in cryptocurrency at any given point in time. The cryptocurrency industry is currently undergoing massive transition, as central banks questioning the integrity and some really exhilarating projects ready to take off in 2020.
Here we have accumulated some top cryptocurrency trends which is expected to take place this year.
The Halving Event
In a time interval, the bitcoin protocol cuts the bitcoin block reward in half in order to facilitate an increase in the demand of the cryptocurrency. The bitcoin halving event will take place in May this year, which will reduce the number of bitcoins rewarded for successfully mining a block in the digital ledger by half, from 12.5 to 6.25 BTC. Analysts predict that the event will likely boost the occurrence of a huge bull uptrend, thus leading to new records.
The Launch of Libra
Libra is the asset-backed stable coin from Facebook which was announced earlier this year. Though it won’t be available until it clears the necessary regulatory compliances. According to reports, the social media giant is planning to public its cryptocurrency by the first half of this year. However, Facebook will not fully control Libra, but instead get just a single vote in its governance like other founding members of this cryptocurrency association, including Visa, Uber and Andreessen Horowitz, which have invested approximately US$10 million each into the project’s operations.
As governments across the world are seeing the huge potential in digital currencies, they are started drafting crypto regulatory frameworks. The year 2019 has seen a growing awareness on the part of federal agencies that cryptocurrency is beginning to become less a component of society and more of the core element of it. With the increasing interest of governments globally and realisation of the safety of cryptocurrency transactions, new regulatory frameworks will make presence in countries like the US and China. As of now, cryptocurrencies do not fall in the realm of legal tender, and the regulations vary widely across key regions.
Integration of AI and Blockchain
In 2020, industry players will make efforts towards integrating machine learning and artificial Intelligence into the blockchain, driving the transactions of cryptocurrency. As blockchain will extract the AI’s higher value, AI will make cryptocurrency transactions more safe and secure. In cryptocurrency mining, the miners need to go through a lot of computing cycles in order to find a particular block for a coin. Thus, the influences of machine learning sequences have been indirectly used in crypto mining. Some industry analysts expect that the year will see more companies to harness the potential of such technological collaborations.