Recently,at e-cryptonews , we started considering what next year will be like for the cryptospace. It is with this outlook in mind that we reached out to industry insiders on their views and insights on what next year holds. Here is what they had to say:
Sang Lee, CEO and Co-Founder of Konstellation, an award winning Blockchain development and consulting company.
“2020 is the year of melding of financial services and the cryptocurrency industry. Previously, but much of the discussion has been around the types of technologies and why certain protocols are better for the industry. However, we have not yet seen large scale changes in actual applications of cryptocurrencies in financial services. In 2020, we will see an explosion of products and services that are built around blockchain and the most practical use case of currency, which is for investment, becoming the foundation of growth and adoption”.
Points to Note
·Convergence between finance and technology is going to occur on a bigger scale.
·Cryptocurrencies shall have special use-case scenarios.
·Adoption will increase.
Scott Purcell CEO Prime Trust, ( Scott has more than 20 years of experience in banking, securities, technology, and internet infrastructure)
“With the global economy slipping into recession in 2020, creating efficiencies and controlling costs in finance and other industries becomes more and more important. This is especially true in alternative securities, and as we see the rise of exchanges and ATS’ that provide liquidity mechanisms for private securities then the tokenization of securities, especially real estate securities, will start to get traction and build momentum. 2020 will continue the trends that we’ve seen in 2019 where regulators and infrastructure providers become more comfortable with blockchain-based securities, and begin to mature the technology and processes needed to support this new era”.
Points to Note
·The global economy is expected to go into a recession in 2020.
·Tokenization of assets shall increase.
·Everyone is becoming comfortable with Blockchain Technology
Wendy Walker, (Leading expert on crypto tax compliance and Solutions Principal Sovos Compliance)
“More than a decade after the first cryptocurrencies appeared, regulators still have not fully caught up with the technology. In some cases, crypto is being used to facilitate tax evasion, money laundering and other criminal behaviors. Meanwhile, the global crypto tax gap is only increasing as the value of these digital assets balloons annually, meaning governments around the world are losing billions each year in missed revenue. Facing a maturing market, global regulators are taking a closer look.
For example, some nations like China, Ecuador and Bolivia have even taken the dramatic step of outright banning the trade of cryptocurrencies like Bitcoin. The developed world is likewise finding it difficult to craft rules that fit the various uses of crypto. For nearly a year, the U.S. Internal Revenue Service has promised that new crypto tax rules are coming right around the corner, missing deadline after deadline in the process. This is likely contributing to an atmosphere where investors feel they can safely underreport crypto income while platforms take a wait-and-see approach rather than invest in compliance now.
In 2020 and beyond, expect greater clarity in tax requirements and coordination between governments to catch tax evaders. The IRS is likely to soon further clarify its rules for crypto investors ahead of the 2020 tax filing deadline, and enforcement will only increase as the agency gathers greater visibility into transactions by working with global partners to close its tax gap. Finally, facing greater scrutiny from regulators, crypto exchanges will be forced to address tax reporting concerns from their investors”.
Points to Note
·Greater compliance will be required for users of cryptocurrencies.
·Countries will start cooperating with each other on reporting systems.
·The ability to use Cryptocurrencies to evade tax and commit crimes will be greatly hindered due to broader cooperation among governments.
Lance Morginn, President of Blockchain Intelligence Group (BIG) a Vancouver-based blockchain-agnostic search and analytics intelligence.
“In 2020, enough time will have passed from crypto winter to where I believe we will see new all-time highs. I know a lot of bigger companies are working behind the scenes on developing systems which will allow them to enter the space. Since Bitcoin is the gold standard, we need to keep in mind some people view this as a benchmark for the industry as a whole and around May 20, 2020 a halving will occur reducing the number of coins awarded per block mined to 6.25 to miners. Historically, when this has occurred the price has increased dramatically, especially in 2016”.
Points to Note
·Bitcoin’s halving will cause a huge spike in prices.
·New cryptocurrency systems will enter the cryptospace in a big way.
·All-time highs are to be expected due to the official end of cryptowinter
Jimmy Nguyen Founding President Bitcoin Association
“2020 will bring:
• A greater focus on the importance of scaling for blockchains. Scaling problems have limited the growth of BTC, Ethereum and other projects. Scaling is needed for any cryptocurrency to become a global digital currency and any blockchain to become a global enterprise ledger. That’s why 2020 will bring the rise of Bitcoin SV [BSV], the only Bitcoin project massively scaling with big blocks, and which has a February 2020 “Genesis” protocol upgrade that will entirely remove any default block cap to allow unlimited scaling.
• Attention on cryptocurrencies and blockchain projects that can deliver real utility. To date, the cryptocurrency market has been dominated by speculative trading and the “HODL” mentality for people hoping their crypto assts go to the moon in value and make them rich. But for cryptocurrency to have real value, it needs real utility. We believe in building an “earn and use” digital economy, where applications provide ways for people to actually earn Bitcoin, and then use them in daily life. That is what will build organic true value in the coin, and what is happening with BSV.
• More government and regulatory oversight of the cryptocurrency industry – which is a necessary step for cryptocurrency to grow into global adoption. We are leading the way in the Bitcoin SV ecosystem by calling for a more regulation-friendly ecosystem that respects the need for KYC/AML compliance, regulatory licensing for crypto exchanges, token systems that enable freezing and revocation of tokens, asset-backed tokens that are audited to be backed by real assets, and developing tools to help governments trace crime on the blockchain.
• Decline of the “anonymity” and dark coins. It’s become clear those will not survive as the crypto industry matures with legal compliance”.
Points to Note
·Bitcoin SV will stop being scaled and will blow up.
·The true uses of cryptocurerncies and blockchain technology will come to light.
·Higher regulation will come from governments.
·The underworld of cryptocurrencies will go into steep decline.
Simon Peters, Investment analyst at Multi-asset Investment Platform eToro
“The key event that we know is happening in 2020 is the next Bitcoin halving – where the reward given to Bitcoin miners for successfully mining a new block will decrease by 50% from 12.5 BTC where it is currently to 6.25 BTC. The halving happens every 210,000 blocks roughly every 4 years. It is estimated to happen sometime in May 2020. Many believe that following the May 2020 halving, we will see the next bull market in Bitcoin. Less new Bitcoin coming onto the market following the halving will theoretically increase the scarcity and therefore, we should see Bitcoin prices increase.
“Bitcoin, the first cryptocurrency, was designed as a peer to peer medium of exchange without the need of a third party. However given the slow confirmation times and arguably high transaction fees, new challengers have come to the market to provide a better solution, such as Libra and Gram. Whilst Libra is still in development and Gram hasn’t yet gone live, it will be interesting to see what will happen if both go live in 2020 and how they are adopted globally. Given the current challenges Bitcoin faces to effectively scale and reduce transaction times and fees, we could see disruption to the industry if the likes of Libra or Gram gain in popularity and start to become widely used.
“Back in 2017, ICOs (Initial Coin Offerings) were the way for blockchain related projects to raise funds, however most of them turned out to be scams. Since then we have had the release if STOs (Security Token Offerings) and IEOs (Initial Exchange Offerings) to provide better protection to individuals investing in start-up blockchain projects. However, both have their shortcomings – for STOs, investors have to be considered ‘accredited investor’ by certain regulators, whereas IEOs (where the listing exchange such as Binance Launchpad vets the project to ensure it is trustworthy) cannot be marketed in certain jurisdictions such as the United States. It will be interesting to see, as we move forward into 2020, if a new ‘offering’ develops – one which has realistic requirements for participation and can be made available to all jurisdictions”.
“2020 is set to be an interesting time in the cryptospace, new challengers and regulation could cause the space to change dramatically over the next year”.
Points to Note
·Bitcoin’s halving next year should cause a bull run.
·New competitors to Bitcoin shall emerge.
·Cryptocurrency Financing options shall face challenges.
·New Cryptocurrency financing options shall emerge.
Fabio Canesin, Co-Founder Nash
“As Nash has always said: we believe blockchain killer app is what it was created for: value transfer, finance. We believe that decentralized financial solutions will continue to gain traction and we will be able to start to see the first winners in the space in 2020”.
Points to Note
- Cryptocurrencies are going to win in the finance world next year.
- Decentralized solutions are going to improver as per adoption.
What do you think next year holds for the cryptospace?
Please let us know in the comments below!