2020 has been an eventful year with lots of events having ripple effects on the financial markets and cryptocurrencies by extension occurring in rapid succession.
From the threat of world war 3 to the pandemic, these events have triggered wild movements in stock and commodities prices and cryptocurrencies have not been left out of these price actions as well.
Going into the second half of the year, what can we expect to see? Below are some speculations:
Cryptocurrencies have come a long way from being considered a fringe technology. Just in the first half of the year, there was an additional 5 million blockchain wallets created, increasing the global number of cryptocurrency users from about 45 million to just over 50 million.
These wallets are held across various exchanges like Remitano and others. It is predicted that this figure will rise even more sharply as we commence H2. The utility, speed, security and seamlessness of cryptocurrencies and blockchain technology will attract even more people to sign up and get involved in the ecosystem.
Penetration into emerging economies
Emerging economies hold a lot of potential for the expansion of the cryptocurrencies market. Remitano, a crypto exchange created in 2014, seems to have realized this and have tailored its operations to capitalize on the possibilities in these markets.
With operations in countries like Nigeria, Cambodia, Vietnam, Cote d’Ivoire, Thailand, Tanzania and Zimbabwe, among others, it can take advantage of reaching a great number of unbanked or underbanked people.
Crypto markets will offer them the technology-enabled ease of transacting with cryptocurrencies rather than the regular fiat currencies. Remitano is also introducing an NGN wallet, based on the Nigerian fiat currency – the naira. This will make it even easier for citizens to purchase cryptocurrencies, and it is expected that this will be extended to other emerging economies before the end of 2020.
Launch of Facebook’s Libra
Despite all the controversy surrounding it, Facebook still seems on track to launch its cryptocurrency, Libra, by the second half of 2020. There has been a mixed reception to the idea with some people considering it a good idea and lots of other parties opposing it. Whichever side you’re on, Libra’s launch is something to look out for in the second half of the year. It will be interesting to see how it all plays out.
Adoption by more countries
China is said to be close to completing the creation of a national digital currency – an unprecedented step that will make cryptocurrencies even more popular, and perhaps, drive its adoption among other countries. The Chinese digital currency will likely be launched by the second half of 2020, and it is surely another event to look forward to.
Finally, we expect that the usual volatility in the crypto markets will continue into the second half of 2020, as major events like reopening and the American elections will swing market sentiments in different directions.