Blockchain Predictions in 2020 – Webounty

Since 2014, China’s central bank has been working on a project called “DC/EP”: Digital Currency/Electronic Payments. In the past few months, China’s DCEP had been a hot topic all around the world. Many people assumed that China will start pilots in 2–3 months. At this stage, the release of DCEP is still highly anticipated. In 2020, DCEP may usher in a truly comprehensive landing.

It is reported that China’s central bank has now launched a formal pilot program. The pilot project will go out of the central bank system and be led by the People’s Bank of China while the four major state-owned commercial banks and the three major telecom operators will jointly participate in the project. It is said that the pilot project will be launched in Shenzhen and Suzhou. DCEP can not only be used as an inter-bank settlement tool, but also can be applied in various scenarios such as transportation, education, and medical treatment, reaching C-end users and generating frequent applications.

If the pilot had gone successfully, DCEP will expand the landing regions and application scenarios in 2020, thus quickly enter the payment system under the governmental support. The full implementation of DCEP, on the one hand, can be used as a payment and settlement tool which can strengthen the supervision of fund transfers, improve financial stability, and enhance anti-corruption and anti-money laundering capabilities. On the other hand, it can also replace traditional digital currencies such as Bitcoin to a certain extent, reduce the threshold for foreigners to use electronic money in China, and improve the convenience for Chinese consumers when they go abroad.

In addition, from the beginning of its release to widespread use by the public, DCEP will definitely experience a process of popularization and application. Payment technology-related services and manufacturers will gain new development opportunity, such as payment institutions with C-end (personal) payment service experience, companies with a large number of B-end (enterprise) merchant resources, commercial banks, payment system developers, etc..

But there is still reason to believe that a large number of unicorn companies will be emerged in these fields in 2020.

In the year of 2019, we have seen quite a few good blockchain technology landing applications.

Internet giants such as BAT (Baidu, Alibaba, Tencent) have accelerated construction and promotion of the application scenarios of the blockchain and the BAAS platform.

China’s President Xi Jinping has called for the country to accelerate its adoption of blockchain technologies as a core for innovation.

With the gradual maturity of technology and the support of national policies, Blockchain + will accelerate its rapid development in 2020. It will be integrated in all walks of life, and there will be large-scale commercial outbreaks.

The digital currency exchanges, which have always been on the top of the food chain, didn’t have a good time in 2019. In the second half of 2019, the market for digital currencies continued to be sluggish. Issues such as low transaction volume, frequent security incidents, and tightening regulations once pushed the exchange in the teeth of the storm. Since October 2019, China continued to implement strict regulations on digital currency transactions. Many people started to worry that exchanges will come to an end, just like the P2P online loan platform. But, it is not going to happen. On the contrary, it is likely that digital currency exchanges will thrive in 2020.

As the China’s DCEP carries forward, there is a great possibility that it will be released within 2020. Also, it is said that the ambiguous attitude of China government towards digital currency exchanges is because the government is still in its investigation. National exchanges are in urgent need upon the release of DCEP.

“Halving” has been a hot word in 2019 for cryptocurrency enthusiasts. Many ordinary users and cryptocurrency trading institutions have convinced that the third round of bitcoin halving in 2020 will bring a new bull market since the bear market in 2018.

The first having of Bitcoin came on November 28, 2012. The block reward had dropped from 50 to 25 Bitcoin. In 2013, the price of Bitcoin went from around $20 at the beginning of the year to a peak of $265, with a maximum increase of 1200%.

On July 10, 2016, Bitcoin was halved for the second time. Following the second having, in 2017, Bitcoin increased from $1457 to a historical peak of $20,000.

The third Bitcoin halving will come on May 14, 2020, and the Bitcoin block reward will be halved from 12.5 to 6.25 Bitcoin. The first two Bitcoin halvings have brought the soaring of the price of Bitcoin. Will the bull market come following the third halving? Will the third halving make the price of Bitcoin skyrocket again?

Let us have a look at the first two halvings before we make an conclusion.

In March, 2013, the new Cypriot president announced that the country’s banking system would have to get new funds by seizing a percentage of the accounts of all depositors.

A few days later, Cyprus’ inhabitants went wild and some of them turned to Bitcoin. As a consequence, the digital currency’s value started changing very quickly, rising from $30 to $265 in a few days.

Bitcoin soared to enormous heights in 2017 to over $20,000 for a single digital coin. Most of the people have agreed that the soaring was was linked with the Ethereum token issuance mechanism. Blockchain projects can issue their own tokens based on the Ethereum ERC20 system to raise funds from ordinary public investors.

Since the early ICO investment has achieved good returns. Many investors and their funds entered the market, thus opening the 2017 super bull market.

In summary, every big rise in Bitcoin is not necessarily related to the halving of Bitcoin output. There are related economic and political factors behind its soaring. Therefore, halving the output of Bitcoin in 2020 may not be able to stimulate a new round of bull market.

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