Since the inception of Bitcoins in 2009, cryptocurrencies have consistently proved to be an alchemy of investments that can transform little capital injections into lifetime fortunes. However, superficially scrutinizing the crypto market trends suggests that some periods of investments have been bumpy rides for some if not all investors.
For instance, a glimpse at any cryptocurrency chart between July 2018 and January 2019 suggests a timeframe of extravagant grief for most investors. During this time, most cryptocurrencies significantly declined in value, with a majority of them losing at least 50% of their prices.
So, is 2020 the right time to hop into cryptos and capitalize on their promising returns or will the year that is promising to be kind to us present months of measly returns on investments? Let’s find out.
Decentralized cryptocurrency platforms are now featuring smart contract functionalities
The idea of smart contracts did not begin with the inauguration of the Bitcoin in 2009. It came way before that, in 1994, and is an invention of Nick Szabo. Smart contracts are self-executing blockchain-based transactions that can help you exchange anything of value such as property, shares, or money transparently
Two decades later after Szabo’s discovery, Ethereum paved the way for the realization of smart contracts through cryptocurrencies. Since then, more cryptocurrencies such as Cardano have emerged as smart contract platforms; giving more credibility to virtual currencies.
Investing in cryptocurrency is more accessible than before
Initially, cash was the only means through which one could buy cryptocurrencies. As an investor in Bitcoin, for instance, you could meet your contacted seller at a downtown coffee shop and hand him or her a lump sum of fiat currency as Bitcoin was transferred to your wallet.
In 2020, it is pretty easy to buy xrp or any other crypto as there are several options of transacting including debit and credit cards, direct bank transfers, and online payment platforms such as Neteller and Skrill.
Governments institution in charge of fiat currencies are experimenting with the crypto wave
As time unfolds, the lists of countries launching their cryptocurrencies continue to grow. UAE, Russia, Sweden, and Japan are a few examples of countries with their virtual currencies already in place. In 2020, more states are likely to unveil and implement their cryptocurrencies roadmaps.
Initially, most countries banned and discouraged their citizens from investing and transacting in cryptos. The change in attitude by governments towards virtual currencies is, therefore, a plus for the blossoming alternative decentralized financial domain.
Despite market volatility, cryptocurrencies can surge in values in 2020
Overly, the factors mentioned above that include smart contracts, seamless investment processes, and support from governing bodies through the launching of their cryptos is almost pathologically helpful to the growth of virtual currencies in 2020.
Due to such developments, many investors across the globe are likely to view cryptos with less scepticism as experienced in the early days of virtual coins. Consequently, there is a high probability that the value of most cryptocurrencies will go through the roof in 2020, despite market volatility witnessed from time to time.