Top 10 major cryptocurrencies to keep in mind in 2020
The desire to look into the future and find out which cryptocurrencies will "shoot" or, at least, will not disappear, is quite natural for an experienced trader. Despite the fact that forecasting in cryptocurrency is an ungrateful job, we will try to determine the top ten major cryptocurrencies of the next year.
The information below should not be considered as a financial recommendation, but rather as a review of the existing and promising cryptocurrency market!
In May 2020, the reward for the first and main cryptocurrency will be reduced by 50%. Thus, instead of 12.5 BTC for each block, the user will receive only 6.25 BTC. However, Bitcoin is likely to bring the dominance index to 65-70% among altcoins and become the cryptocurrency with the largest market capitalization. Together, these factors will influence the growth of its market value.
Active use of the Lightning network will change the BTC ecosystem. This will allow it to be implemented in decentralized applications, a micropayment system and online stores. Such transformations will eliminate the main claim to the Bitcoin network, since it has no prospects for further development.
In the event of an ongoing trade confrontation between China and the United States, Bitcoin (along with gold) will remain a “refuge” for owners of large fiat assets. And if the financial crisis continues in Argentina, Venezuela, Iran, part of the funds will also be withdrawn in these regions for transferring them to cryptocurrency.
Although the Ethereum project has slowed in recent months and is not so common in news headlines, users still believe in an inevitable increase in its cost to $ 1,000 per coin. Cryptotrader N. Patel conducted a survey among subscribers, and 54% of 5410 people spoke in favor of increasing its value.
Unlike Bitcoin, Ethereum uses practical smart contracts, which are the basis of many projects and the digitalization of transactions and workflow. Its value may increase due to increasing demand for the service, and not the scarcity of the asset like BTC. A large role in the success or failure of the broadcast will depend on the upcoming fork updates and the early implementation of the Proof-of-Stake proof algorithm. Regulators' recognition and the community’s decision to exclude ETH from the altcoin list can also affect growth.
Unlike Bitcoin, Ethereum uses practical smart contracts, which are the basis of many projects and the digitization of transactions and workflows. Its value may increase due to growing demand for the service, and not due to a shortage of assets such as BTC. A large role in the success or failure of broadcasting will depend on upcoming branch updates and the early implementation of of the Proof-of-Stake algorithm. Regulators' recognition and community decision to exclude ETH from altcoin can also affect growth.
The NEO project is often mentioned in ratings for the next year and for good reason. This cryptocurrency breaks many stereotypes of cryptocurrency, including being the first open source product from China to transform a traditional financial system by combining digital and real assets.
The original Superconduct trading mechanism allows users to trust funds through a decentralized platform. That is, its practical applicability is not in doubt, as is the rapid growth of interest. There was also room for smart contracts.
By the way, the developers are looking forward to a dialogue with the Chinese authorities, which are negative about cryptocurrencies. NEO may even conduct an ICO, but so far it has been trading fairly stably, at $ 10 per token.
The favorite cryptocurrency of the compilers of the rating from the China Information Technology Development Center has repeatedly appeared in forecasts for the next few years. If you don’t even know much about cryptocurrencies, investing in this coin worth $ 4 (mid-August 2019) is definitely worth it.
If one day Twitter, Uber and Amazon move to the blockchain, then the core of their work will definitely be EOS. The system fixes Ethereum's scalability issues and is ready to replace competitor-based blockchains. In case of failure of the latter, an incredible EOS pump awaits us up to $ 100 per unit. EOS owes its achievements to the delegated proof of ownership (DPoS) consensus algorithm and the theoretically infinite number of parallel block chains.
XRP is also called the "king of banking infrastructure." The successful conclusion of contracts with the largest financial market players has allowed us to talk about the Ripple ecosystem as a local breakthrough in the crypto industry. The cherry on the cake was the integration with Western Union and the potential replacement of SWIFT to speed up and reduce the cost of transferring significant amounts between contractors.
However, you should not expect excess profits from XRP. Even in the event of absolute success, it is unlikely that its price will rise above $ 0.7. In the next couple of years. Recently, users began to sign a petition, accusing the leadership of “draining” billions of tokens and maintaining the exchange rate at the same level of 0.3-0.4 US dollars. Yes, part of the community does not like Ripple, but this is one of the few really working projects.
The recently surviving Halving Litecoin has not yet received the honorary title of Digital Silver, but you cannot say anything about it. Its common code with BTC automatically makes LTC an attractive asset, as well as technological superiority in making payments in the real world. Thanks to the Lightning Network, LTC will become interchangeable with Bitcoins.
While LTC is trading at $ 85 per coin, it could well take the $ 200 mark by mid-2020. Over ¾ of all coins will be mined in the next year, which creates an asset shortage and automatically hints at a rapid increase in value.
The best solution for darknet and all those who follow the anonymity of their presence on the Web, and also do not like ASICs. Monero is not endorsed by governments and law enforcement, but for everyone else, she is a welcome asset. The CryptoNote 2.0 protocol used allows only the owner to know the wallet data (thanks to ring signatures and one-time addresses for a specific transaction only). Demand for such a cryptocurrency will always be stably high, even if users are not very clean at hand.
Hackers also do not have information about addresses and accounts, which greatly complicates the hacking and withdrawal of funds. For all the benefits, you have to pay with a lot of data in transactions and the absence of scarce emissions. But at the same time, Monero remains the least dependent coin with little volatility anyway.
The future of cryptocurrency mining may lie in the plane of the Proof-of-Stake Proof of Ownership algorithm. The NXT crypto platform offers its own email exchange system. money using a unique blockchain. The developers wrote the code from scratch, at the same time relieving it of the problems of previous similar systems. Transfers within the network are among the fastest and have no known analogues.
The platform is characterized by energy efficiency, built-in chats, trading platforms and other functions. It is protected against double-rate attacks, even if the attacker has about 90% of the resources.
This digital asset promises to be a convenient platform for institutional and retail investors. Although Qash is not so widespread among bidders, it can be found on exchanges at a price of $ 0.1 per coin. Most experts predict its rapid growth, including next year.
Among the unique project proposals is the Liquid system. This will change the balance of the game in the market, which is already taking a step to the next generation of crypto exchange: the spread of gateways to paper currencies, the massive interest of institutional structures, the emergence of decentralized exchanges. Simple trade in altcoins, positions in the banking and financial sectors and regulation make this project very promising.
The Facebook project, called Libra (Libra), has not yet been launched (and perhaps will never be launched), but has already made enough noise. In fact, this is one of the largest attempts by corporations to create their own payment instrument that could compete with the US dollar. Most likely, this is precisely what local regulators fear, who speak out negatively about the project. He is involved in the project, including D. Marcus of PayPal.
In essence, it will be a stable coin backed by the financial power of Facebook. On average, they planned to attract about 1 billion people from all Facebook resources. Users can be combined into one payment and messenger system with secure encryption conditions. To do this, they created the Libra Association, which included large interested companies (although there is another opinion). However, it is now clear that discussions with the regulator will be delayed, and the project will begin no earlier than in the first half of 2020, and only if approved by US lawmakers.
We talked only about the most notable cryptocurrencies, which are worth paying attention to next year. It is not necessary that they bring superprofits, but in any case, any investor knows that the funds should be distributed differently, investing in proportion to the degree of trust and analyzing each asset.