Top 10 most important developments of 2020 for the cryptocurrency world
What do you think 2020 was like for the cryptocurrency world? As cryptocurrencies have improved their awareness, states have begun to get more hands on the business. Coronavirus has affected many sectors as well as the cryptocurrency market. DeFi exploded, BTC broke records, and most importantly, now more and more people have heard about Bitcoin and cryptocurrencies. Here’s a summary of this year’s cryptocurrency 2020 adventure in 10 of the most important titles for you coinputin followers!
1 – Trillions of dollars printed, Bitcoin price hits record
For the cryptocurrency world, the most important title of 2020 is undoubtedly coronavirus. In March, when the covid-19 pandemic began worldwide, the price of BTC fell to 4 thousand dollars, while the entire world economy also came to the brink of a crisis. Governments and central banks have signed incentive packages to deal with the difficult process brought about by the pandemic. The US government and the Fed have also thrown their hands on money-printing machines, with the US injecting trillions of dollars into the market as part of the first coronavirus stimulus package.
These policies weakened its strength while increasing the supply of the dollar; the dollar also experienced a significant meltdown against the euro. An incentive package, including financial aid to stimulate the economy, combined with people’s anxiety about the future, also failed to deliver the desired result. The pace of dollar circulation slowed to historic levels; people preferred to keep the money they had rather than spend it. Experts have suggested that people may have preferred to invest with their money.
Meanwhile, the price of Bitcoin has risen more than 100% since January 2020. BTC, which fell to the 4 thousand dollar band in March, depreciated by about 25% against the dollar in that month. But when April came, BTC gained more than 35% against the dollar, both with its price increasing almost 2 times and the dollar weakening. People started asking questions about “Could there be a digital alternative to gold” for Bitcoin.
Bitcoin continued its rise, strengthening the negative correlation it showed with the decline in the strength of the dollar throughout the year. For BTC, the real boom occurred in the last quarter of 2020. The sensitivity of the price of Bitcoin to the US presidential election on November 3 was highly feared. But the situation did not develop as feared, and the price of BTC showed serious momentum as the election heated up. Friday November December broke the $ 20k record after several unsuccessful attempts, although BTC was affected by the “Black Friday” weather. BTC pushed its all-time high to several thousand dollars more.
2-Institutional investor interest has skyrocketed
Institutional investor interest has been cited as one of the key factors igniting the Bitcoin fuse in 2020. Several corporate companies, such as Nasdaq-listed MicroStrategy, Sqaure, under the leadership of Twitter CEO Jack Dorsey, have decided to devote some of their reserves to Bitcoin Investment. Paypal, the digital payment platform that is seen as a global giant in many respects, also announced the start of cryptocurrency transactions. PayPal’s move was interpreted by the market as a touchstone for Bitcoin adoption. In addition to companies, legendary investors such as Paul Tudor Jones and Stanley Druckenmiller have opted to join the Bitcoin ranks this year.
Most market experts have noted that institutional investor support is a force that will trigger the Bitcoin rally. It has been suggested that the rally, which will take place in 2020 with the growth of institutional investors, will be different from the trend that ended in 2017 with a record 20 thousand dollars and followed by a collapse. Cryptocurrency analysts said that while there were speculative movements of retail investors in 2017, the “HODL” philosophy of institutional investors investing large amounts in this bull run was effective.
3-States are now involved in this: cryptocurrency regulations
As cryptocurrencies begin to be used by more and more people in 2020, they have also attracted the attention of states. Governments that previously only wanted to take measures for ways such as money laundering have seized on cryptocurrency regulations in general, with people on the street becoming more familiar with cryptocurrencies. Some countries offer cryptocurrency-friendly regulations, while others are certainly positioned against them. There has been a backlash against the large rates of taxes imposed by some governments on cryptocurrency assets.
While the UK has toughened its cryptocurrency regulations throughout the year, it has reported that it will not open its eyes to cryptocurrency companies. While Japan’s national cryptocurrency is struggling for the digital yen, he stressed that the laws should be revised for cryptocurrencies. South Korea has proposed digitalization-friendly regulations, while also planning to impose taxes on cryptocurrency assets. Russia, on the other hand, has tabled regulations against fraud activities, promising to improve the cryptocurrency sector.
4- The expected: Ethereum 2.0 age
For the Ethereum ecosystem, the first official step has been taken for the Ethereum 2.0 transition, which can be considered as “dream come true”. This step involved switching to the Beacon Chain network, called “phase 0”. In order for this transition to occur, the amount that ETH investors must invest in the Ethereum 2.0 contract by December 1 was announced as 524 thousand 288. At first, the process was heavily disrupted and frightened the ETH base, which supported the transition. But as we approached December 1, the ETH stake process grew like an avalanche and passed the targeted amount.
The first of 4 stages of Ethereum 2.0, which aims to solve many of the network’s problems, such as scalability, and transition from a proof-of-work (PoW) algorithm to a proof-of-ownership (PoS), was implemented before 2021. Ethereum aims to coordinate the network with Beacon Chain and conduct some kind of experiment to ensure full migration in the future. It was announced that with Ethereum 2.0, there will be validators on the network instead of miners. Those who invest their ETS in the Ethereum 2.0 network are expected to earn as much as 20% for the first stage. As participation in the network increases, it is planned to reduce its earnings at certain rates.
5-DeFi sector boomed
DeFi, a sector of about $ 600 million at the start of 2020, has been on the rise this year with steep acceleration from the frenzy that began in June. As of December, the total value locked in decentralized financial platforms was more than $ 16 billion. Decentralized finance has become a remarkable sector for cryptocurrency investors with applications such as lending, yield farming offered by DeFi platforms. The cryptocurrency community has loved the DeFi world, which offers many of the advantages of traditional finance as part of transparency and anonymity.
As interest in DeFi projects grew Avalanche, Bitcoin dominance was significantly shaken as Defi Projects ‘ shares climbed as the BTC price entered the consolidation process in the summer. But as well as established and reliable Defi platforms, projects that did not fully undergo inspections to benefit from the excitement and interest in the sector began to stain the sector. Many platforms have been hacked worth millions of dollars. For investors, though, the idea of profiting from tokens already in their hands at rates they could not earn with traditional financial deposits outweighed it. The DeFi sector has developed and grown every day with the support of users throughout 2020.
6-Traditional coins are going digital
Both cryptocurrency-friendly countries and those opposed to private cryptocurrency initiatives have entered a digital central bank money race in general. Digital fiat currency that may be in a support role to the European Central Bank upon the work of the euro, Deutsche Bank, Europe’s digital suggested that other countries would be forced of late about money, and money to work on your own digital each European country are invited.
The country that currently leads this race decisively was China with the digital yuan. China began feasibility and development work for the digital yuan before many countries. While some countries have gathered new research institutions, China has launched practical use trials for the digital yuan. China, which is trying to encourage the public to use digital yuan with airdrops, has officially launched the use of digital yuan in everyday life in sectors such as shopping, service, although it is limited to pilot regions. With China leading this race, digital dollar work has also been accelerated. Although the Fed initially looked cold on the issue, it announced that they were seriously considering the digital dollar due to the impact of the heated race. Many major news sources likened the digital dollar race to a second Cold War, stressing that America was late for the digital dollar.
7 – The “STABLE” scheme against the growing fixedcoin market
2020 has been an important year for hardcoins, seen as a bridge between traditional finance and the digital world. The volume of the constantcoin market has risen incredibly, moving in a parabolic way. The fixedcoin market has grown almost 5 times in 2020 under the leadership of leader Tether (USDT). USDT trading volume peaked, overtaking all cryptocurrencies.
There have also been significant announcements on the constantcoin front this year. Returning to Facebook’s snake story, the cryptocurrency project has changed Libra’s name to the Latin word Diem, meaning “day.” Facebook, which announced more details about Diem this year, indicated that Diem could be released in the early months of 2021 as a fixed currency indexed to the US dollar for the first phase.
In addition, countries and banks took part in the face of private-enterprise fixed coins. Private hardcoin opponents have said that such assets, which are indexed to a particular fiat currency, can disrupt financial order and endanger banks. The US has tabled a bill called “STABLE,” which proposes to regulate fixed assets, taking the rhetoric a step further. The enactment of this bill has raised concerns that the cryptocurrency sector could take serious blows.
8 – This happens every 4 years: BTC half
The halving event for Bitcoin, which takes place every 4 years and means halving block rewards, took place in May 2020. The reward Bitcoin miners received in exchange for removing a block fell from 12.5 BTC to 6.25 BTC. With the cryptocurrency sector halving, he worried that mining could lower the hash rate.
Concerns for Bitcoin did not become a reality, and BTC managed to remain firm after the half. Both record and near-record levels have been seen many times over the year under the hash rate. Suggesting that a “supply shock” began with the half-way, many analysts suggested that the Half-Way event could create a “boom” effect on the price of Bitcoin in the medium and long term.
9- Banks also want to play, cryptocurrency services announced
Banking was one of the sectors that could not remain insensitive to the development in both market value and adaptation of cryptocurrencies and Bitcoin. Many banks have given cryptocurrency news to new users with their existing customer base and cryptocurrency services. JPMorgan, one of the leading investment banks, has started using its own cryptocurrency.
Standard Chartered, one of the UK’s largest banks with a total value of more than $ 720 billion, has announced that it will launch cryptocurrency services for its users. The bank plans to build a cryptocurrency exchange in the future. Another bank move in 2020 came from Asia. Southeast Asia’s largest bank, Singapore-based DBS Group Holdings, has announced the sale of cryptocurrencies.