Cryptocurrency had an interesting 2019, especially considering the announcement of Facebook’s Libra token.
There has been a significant interest in the regulation of digital currency, as well as an increase in the adoption of networks, as was evidenced by the work on Libra.
Paired with a steady price increase for Bitcoin – the biggest cryptocurrency in the world – this paints a hopeful picture for the industry in 2020.
Speaking to MyBroadband, cryptocurrency expert Simon Dingle said he is most excited to see Bitcoin used as it was intended when it was designed.
“What excites me most is seeing Bitcoin used as intended, as money for the Internet, and in promoting financial inclusion in the truest sense of the term,” he said.
“We’ve seen the power of Bitcoin when used on the ground in economies like Venezuela, and as a solid store of value in uncertain times economically.”
Not going anywhere
Dingle said that governments and regulators were beginning to accept that cryptocurrencies like Bitcoin are not going anywhere and that they will have to deal with them.
“I think there is a shared sense that we’re overdue for another cataclysm in world markets and memories of the 2009 crisis still have us weary of how disempowered we in the traditional financial world.”
“Despite the best efforts of bad actors spreading misinformation about Bitcoin and cryptocurrency, more and more people are just using it and realising that money can be more reliable, fair, and efficient,” he said.
“We’re also seeing regulators around the world appreciate the fact that cryptocurrency is not going away, and that it needs to be included in their directives and policies. Some are doing this very badly, and others are embracing it in a meaningful way.”
Price surge ahead
Dingle told MyBroadband that he does not make price predictions, but if previous trends are repeated, then Bitcoin may see a large price increase coming.
“If previous halving events are anything to go by – and they are – then we should see the price of Bitcoin picking up substantially towards the end of 2020,” he said.
“The market cap of Bitcoin is still a fraction of the largest firms in Silicon Valley, and a drop in the financial ocean when talking about the things that Bitcoin was designed to replace – so there is room for substantial growth if Bitcoin adoption increases and scaling stays on track.”
Dingle added that blockchains currently have a number of enemies, although some may change sides and embrace the technology instead of fighting it.
“There is also a battle of information underway that is reminiscent of the early days of Linux and open source, when companies like Microsoft spent millions of dollars advertising misinformation about the open source movement,” he said.
“Eventually Microsoft lost and wisely decided to embrace the technology instead of fighting it. The same is happening for Bitcoin and cryptocurrency now, and we have seen traditional financial companies pay to spread misinformation about Bitcoin.”
“Hopefully they will come to their senses in time too, and be more like Microsoft,” he added.