The halfway point of 2019 has barely passed, but the year can already be considered one of the most eventful for the crypto industry. Big tech companies have become seriously interested in blockchain, they’ve been trailed by governments and regulators, and even civilians have begun to discuss cryptocurrency with renewed vigor. All this has led to a long-awaited growth of bitcoin and a revival in the altcoin market, but everyone has the same question - what's next? Let's try to imagine what big shocks can be expected in the market before 2020.
If large tech companies have something in common, it’s the desire to get into any innovative market and dominate it. Therefore, it is not surprising that they are all thoroughly monitoring the cryptocurrency market. And the arrival of products from large corporations leads to an influx of funds and an expansion of the customer base. Firstly, we are speaking about the “Big Four,” sometimes called FANG: Facebook, Amazon, Netflix, and Google. The first shot came from Facebook with the announcement of their Libra cryptocurrency, and then immediately the attention of investors and the media turned to their colleagues.
Amazon Pay Vice President Patrick Gaulthier said about the cryptocurrency market, “It’s fresh, it’s speculative; at Amazon, we don’t really deal with the speculative, in the now. ” The other two giants have not yet given clear signals, but besides them, there are also other “small” tech companies. For example, Telegram has announced Telegram Open Network (TON) and its own cryptocurrency GRAM. One way or another, the entry of any company from the established world of IT into the world of cryptocurrencies stands to create a storm similar to that which was raised with the Facebook announcement.
And the noise following the Facebook Libra announcement was heard not only in the crypto community but also in the offices of government officials all around the globe. Here it is worth highlighting another big four: China, the US, India, and Russia. These four states have been sending conflicting signals about cryptocurrencies all year.
Judge for yourself: China, on the one hand, is interested in cryptocurrencies and even in the creation of its own, but at the same time has introduced severe restrictions on crypto mining. The USA clashed with Facebook in Congress, threatening to ban Libra. In India, the government proposed an act which would criminalize cryptocurrencies, which is why several large DEXs closed during the year. Meanwhile, the bill still hasn't been properly considered - the meeting on it has repeatedly been postponed. In Russia, the situation is similar - cryptocurrencies are in a gray zone, and the Duma is still postponing the date for a committee to assemble and come up with a consistent policy on crypto.
If at least one of these countries gets their act together by the end of the year, it could greatly affect the market - because each of them is among the ten largest economies in the world.
Despite the hype generated by the big guns, history is full of changes that started from below. The world is becoming more turbulent, China and the United States are in a trade war, Eurosceptics are gaining more influence in the European Union - all of this affects rates and confidence in old currencies, while crypto offers direct transactions with the minimal involvement of large corporations and government agencies.
All of this can lead to the transition of quantity into quality, and an increase in the number of users of cryptocurrencies and related products. This could all lead to a domino effect, and by the end of the year we could see a wave of research and articles confirming this trend, which might result in another bull run.
In order to tip the scales, all that’s needed may be a few large investors coming to the crypto world and a couple of products on the blockchain that get successfully accepted by the masses.
Ethereum has been dubbed “the Bitcoin killer”. Subsequently, many altcoins have been called Ethereum killers. Both blockchains are still alive and well and not giving up their positions, but the never ending influx of competition makes sure they keep their feet on the gas.
For example, EOS initially exceeded Ethereum in speed and was created for dapps with a large number of transactions. In early June, Block.one announced its own blockchain based social network Voice which will be released in the fall.
Given the general dissatisfaction with the tightening of censorship on social networks, this, or perhaps a future project on an alternative blockchain, could turn users towards cryptocurrencies and dapps, and spur capitalization of the largest altcoins, greatly changing the face of the market.
Technically, it is expected in 2020, but considering the hype generated around each halving and the quasi-religious vibe surrounding it in the crypto-community, we might expect an increase in speculation, predictions and panic, as this significant event starts getting closer.
The rest of the year promises to be stressful for all traders and crypto users — the rise that we observed at the beginning of the year has to be confirmed by serious market and political movements, otherwise, by the beginning of 2020 the uptrend could easily turn into the fallout of the previous year. Everyone is waiting for big news in the fall, and traders are especially advised to keep their ears open for statements coming from the large tech companies and political entities, because this year has shown that cryptocurrencies are as legit and as big as any tech solutions in our rapidly developing world, and the big guns have got their sights set on the cryptosphere.
Thank you for reading,
The Lumi Wallet Team