Crypto money
is an active sector that takes action quickly and comes up with a new development every day. That being the case, new technologies, key market players and trends are changing faster than any other sector. There are many new developments in the crypto world and
blockchain
space in 2020, and many analysts agree that the trends will continue in the coming months.
So what are the top 5 trends that define cryptocurrency at the end of 2020?
1.Transition to a cashless society
After COVID-19, which has affected the world, transformations have begun in many areas and it seems that nothing will be the same anymore. Many sectors have been adversely affected during the pandemic, households and firms have changed their perspectives on the economy in the process, business has started to be carried out remotely, and the use of cash has significantly decreased, breathing new life into payment methods. For interaction with the crypto world, applications have simplified enough to allow the purchase of digital assets with a credit card. Moreover, it is foreseen that these practices will continue after the coronavirus crisis is over.
2.Krypton is now known to everyone
The perspective of crypto coins is changing more and more every day. With the July 2020 bull market prevailing and Bitcoin outpacing some large companies with a market capitalization exceeding $200 billion, the assumptions that
Bitcoin
is a bubble are rendered irrelevant. As the demand for cryptocurrencies, and especially Bitcoin, has increased during the pandemic, institutional crypto engagement is increasing. Moreover, the blockchain that entered our lives with Bitcoin and revolutionized it continues to be integrated into many fields and transactions.
3.Spread of Decentralized Finance (DeFi) Technology
, the financial software used for digital assets, financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum, occupies an important position in the crypto space as one of the fastest growing areas of blockchain and decentralized web. The DeFi sector is a factor that will move the development of the cryptocurrency sector forward as it creates a better financial solution area for many people. In addition, many companies investing in Blockchain have started to introduce DeFi products, and this sector continues to grow rapidly. On the other hand, the digitization of money is thought to bring these initiatives to the forefront.
4.Central Bank Digital Currencies
Central bank digital currencies have started to be on the agenda of many countries. As it is known, the Central Bank Digital money is separated from crypto coins due to its centralized structure. It is thought that societies will contribute to the crypto ecosystem by adapting more easily to this monetary system in the digitalization process.
China, the world’s second largest economy and prominent with its developments in technology, continues to work to issue its digital currency and has come to the end of the testing stages. It is highly anticipated how a digital yuan will affect the cryptocurrency world, how it can change the economic balance of power, and whether the dollar will maintain its status as a global reserve currency against the Digital Yuan. It is known that many countries outside of China have started to work on issuing their own digital money. Turkey is among these countries
5.Improved privacy with blockchain technology
One of the most notable issues in blockchain technology is privacy. Privacy in blockchain technology prevents a person from being known, so that the person can make transactions without using their name, country or address and other information.
More innovations are expected after 2020 with the adoption of this field by people. In addition, decentralized technologies and DLT-oriented services can be considered the beginning of a new era.
