Top Trends That Will Define Cryptocurrency In Singapore In 2020
The cryptocurrency industry in Singapore will present massive opportunities in 2020. There are already rising trends in cryptocurrency in Singapore which is an indication that 2020 will be a year when the industry will become bullish. Over the past, people have been looking at the stock market trends to create wealth but the paradigm has changed and several investors are considering crypto assets.
The growth of cryptocurrency in Singapore in 2020 will benefit from the new legislation in the country that is aiming to attain regulatory clarity within the industry. The Payment Services Act gives cryptocurrency companies a leeway to operate in Singapore after they have applied for an operating license. With the Act coming into effect, Singapore will have a regulatory framework on crypto firms that engage in activities that involve buying and selling of digital assets such as Bitcoin and Ethereum as well as those engaging in digital payments.
Although the cryptocurrency market is unlikely to calm down in 2020 there is nonetheless some promise to deliver considerable progress that will help crypto assets to mature. Equally, there is a possibility that 2020 might define how cryptocurrencies can become a core component in finance. based on the current and upcoming trends the cryptocurrency industry will experience a lot of activity which will shape the crypto-assets market through 2020.
Top cryptocurrencies in 2020
Bitcoin is the top crypto asset that will define the industry in 2020. At the beginning of the year, BTC was worth around $7,200 and it has been showing a positive trend after recently touching $9,000. There is a lot of potential in the digital asset with its short-term gains expected to be followed by a strong increase in price by the end of the year. Equally, Bitcoin will benefit from the halving and it is likely to result in a surge in BTC price after halving a trend witnessed in the past.
Ethereum is also another crypto asset to watch and it one of the best altcoins with great promise. Several blockchain companies have been investing in the coin and because it is a credit holder which means it relies on blockchain tech that can transcend currency only applications. Other crypto assets to watch include Binance coin, Ripple, Stellar, Litecoin, and Komodo among others.
Here are trends that will define cryptocurrency in Singapore in 2020:
The bitcoin halving in May will be a major event in the crypto space. the halving will reduce the number of bitcoins rewarded for mining a block in the digital ledger from 1.5 to 6.25 BTC. This is not the first time the halving will occur as it has happened twice and it resulted in significant price action for bitcoin.
Halving results in scarcity in the market and a result Bitcoin investors will be expecting a supply-side price growth synonymous to the two past halvings. Nevertheless, investors should be aware that demand can also drive the price as with bitcoin mining becoming less attractive the number of miners will most likely drop the same as hash rate until a balance is established.
Launch of Facebook’s Libra
Social media giant Facebook has been working on a payment network initiative that has somewhat received resistance from regulators across the globe. The company announced that they will not launch until the summer of 2020 after addressing necessary regulatory hurdles. Despite the challenged the asset-backed stablecoin has faced it nevertheless has huge potential owing to the large potential user base of Facebook users.
Facebook is omnipresent across the globe including in Singapore. Therefore the adoption of the Calibra wallet and Libra means that the company will make it available for a large number of users to deal with cryptocurrencies. It appears like Facebook will launch Libra with very limited scope, functionality, and partners. It will not be the onboarding vehicle and payment rails that it was originally supposed to be but it nonetheless shows signs of progress.
Enhanced regulation on cryptocurrencies
There has been growing regulatory scrutiny from various governments across the globe on cryptocurrency. This is because regulators are starting to consider cryptocurrencies as a core component of society. With some big companies embracing cryptocurrencies regulators are paying more attention to digital assets.
For instance, the Payment Service s Act that Singapore passed recently gives the Monetary Authority of Singapore the mandate to oversee cryptocurrency activity in the country and exercise control on issues such as money laundering. More countries are expected to follow this path and this year regulatory scrutiny on cryptocurrencies is expected to increase. Legislation to date has been friendly with things like tax rulings being progressive which has enabled countries such as Singapore to make progress in the industry. Going forward the industry should expect tighter measures which might spell hard times for digital assets.
Increase in interoperability
Cryptocurrency assets are increasingly becoming mainstream and have been finding actual uses. There have been issues about the regulation of anonymous transactions and the implementation of transactions across a range of ledgers. However this year there is a likelihood of consolidation of cryptocurrency and the strife for interoperability with ledgers and wallets. This is something financial technology firms have been focusing on and are eager to address.
There are still major differences between blockchain protocols such as Besu, Quorum, and Corda but there is room for interoperability on how the digital assets of various chains can coexist. In 2020 there is a possibility of seeing more multi-cloud blockchain deployments as well as successful cross-blockchain trials.
Enhanced adoption of the lightning network
The lightning network offers instant bitcoin payments and transactions by enhancing transaction speed. This second layer implementation on the bitcoin network leverages off-chain data to increase transaction speed and thus enabling low costs. This year there is a likelihood that there will be an increase in the number of nodes, channels, and applications created on the network. This will result in the growth of the bitcoin ecosystem due to firms using the bitcoin network.
Therefore in 2020it will be the defining moment for cryptocurrency when the digital assets will begin proving their merit or disappear.