Cryptocurrency in 2019 & Estimates in 2020


The biggest winners and losers in the cryptocurrency market in 2019

Understanding crypto market will be extremely easy once we make a thorough analysis of the past actions and reactions. Our future is based on present actions only and if we have a thorough knowledge of how actions in a particular market beget reactions we will be able to get factual analytical results. This is easily possible by making past analysis for determining the present and future.We haven't been unfamiliar with the ups and downs of the cryptocurrency industry. But it turns out that the cryptocurrency market in 2019 remains the most surprising year.

The 2018 bear market made market analysts call it a "year of regulatory liquidation", which also left regulators in many regions of the world full of uncertainty on how to treat cryptocurrencies. But at the same time, 2019 has also proven to be a comeback year, and global technology giants like Facebook have switched from banning cryptocurrencies to accepting them. And in June of this year, Facebook released its cryptocurrency project Libra White Paper.

In addition, escalating global events and geopolitical risks are constantly changing investors' perceptions of cryptocurrencies such as Bitcoin. However, the United States Securities and Exchange Commission (SEC) still rejected all proposals for the Bitcoin ETF this year, which shows that the entire industry still has a lot to do.

So, with the end of 2019, which companies, individuals and projects stand out, and which companies, individuals and projects have fallen into an underestimation and crisis?


Bitcoin Rises sharply

This year, Bitcoin officially entered its 10th year. Bitcoin also kicked off the cryptocurrency industry in 2019 with a wave of rise and led the recovery of the entire industry. Morgan Creek Digital Asset Management Co-founder Anthony Pompgliano said: "The sharp increase in the price of Bitcoin in 2019 is that there are more net buyers than sellers this year."

Moreover, with the increase in transaction volume and market value in the second quarter of this year, Bitcoin also led the market with a 165% increase, during which the price of Bitcoin soared from $ 4,103 to $ 10,888. In addition, Bitcoin's market dominance has also increased from 54.6% to 65%.

At the same time, people also believe that after the global uncertainty increases, digital currencies can play a hedging role against traditional capital markets. During this year's China-US trade war, most investors saw Bitcoin and gold as safe-haven assets.

However, Bitcoin is not always bright in 2019. In the third quarter of this year, with the sharp drop in the price of bitcoin, the market value of bitcoin evaporated by nearly $ 100 billion, which also caused some pessimism in the market.

Fortunately, Bitcoin still ended the quarter with only the smallest decline in the entire cryptocurrency market, and its market dominance rose by 5.4% during the period. After all, Bitcoin is still the best performer of all cryptocurrencies.

How about Bitcoin and other types of assets?

In fact, compared to other types of assets, Bitcoin will far outperform them in 2019. For example, the price of gold has risen by only 17% since January this year. Although the S & P 500 has an outstanding performance of + 21%, it still dwarfs the increase of Bitcoin over the year.

In addition to the price, Bobby Lee, CEO of Ballet Crypto Wallet, said that Bitcoin has also benefited from several major technological developments: "2019 is a great year for Bitcoin as the Bitcoin open source ecosystem has achieved With great progress, the Lightning Network is also increasing Bitcoin's trading capabilities. "

Victor Coinbase's Continued Expansion

Coinbase has long been known for its fairly selective strategies for listing on its exchanges. At the same time, as one of the most well-known exchanges in the global cryptocurrency field, Coinbase is also known for having fewer large-scale hacking attacks.

In 2019, some major cryptocurrency exchanges such as Binance have become victims of large-scale security breaches, which have even led to the theft of thousands of bitcoins, and Coinbase stands out as a secure and reliable platform.

However, Coinbase was also questioned by Twitter users this year for its acquisition of Neutrino. Neutrino is a startup that uses blockchain to collect data on cryptocurrency transactions. For most Twitter users, Coinbase's move is considered to facilitate the exchange's monitoring of its customers.

However, Coinbase said the acquisition of Neutrino is only part of its goal to support all assets while complying with relevant laws and regulations. In addition to its acquisition of Neutrino, Coinbase has doubled the number of cryptocurrencies listed on its exchange since 2018.

In fact, Coinbase has been making news almost throughout 2019, from making acquisitions to rejecting acquisitions, and obtaining multiple patents in the process. At the same time, Coinbase's Visa debit card solution has seen exponential growth this year and is now available in more countries.

In May 2019, Coinbase also extended its reach to more than 100 countries outside the United States to promote its stablecoin USDC. It can be said that the aggressive expansion of Coinbase in 2019 seems to have started direct competition with other major global cryptocurrency exchanges such as Binance.
 
Cryptocurrency of Facebook is Libra in the indication chart diagram
Facebook Cryptocurrency Libra

Loser Libra Struggles

Facebook officially released its cryptocurrency project Libra white paper, arguably one of the most significant events in the cryptocurrency industry in 2019. However, the skepticism of US lawmakers and regulators has made the project difficult. The US Congress has held several hearings on Libra, but so far there has been no substantial breakthrough.

According to Libra's white paper, Libra's mission is "to provide billions of people with a simple set of global currency and financial infrastructure services."

In addition, the Libra white paper further states that it will use a new decentralized blockchain, low-volatility digital cryptocurrency and smart contract platform plan, which together will create new opportunities for reliable financial service reform .

Although the Libra project can be said to be ambitious, currently Libra is not only subject to strict scrutiny by lawmakers, but also faces its own internal problems.

Bobby Lee, CEO of Ballet Crypto Wallet, expressed his optimism about Libra, saying, "Although US and European lawmakers and regulators believe that non-governmental currencies pose a threat to their power, Over time, governments will realize that they cannot stop cryptocurrencies and that their opposition will diminish. "

A bumpy year for Circle

In October 2018, headquartered in Boston, Circle, a cryptocurrency company supported by Goldman Sachs, and Coinbase formed an alliance called center to support and develop the stablecoin USDC.

In July this year, Coinbase and Circle expanded their participation in their alliance, a move that would allow other financial entities interested in the project to issue USD-based stablecoins. In addition, in the statement, they also mentioned that "the next step is naturally to envision a new global digital currency." In short, Centre's plan is to create a global digital currency in a similar way to Libra.

However, Circle's experience throughout 2019 has been bumpy. Although USDC was well received by the market, Circle closed its mobile app from May to June this year, reduced its funding target by 40%, and laid off 10% of its staff. Just recently, Circle fired another 10 employees, citing efforts to streamline services.

The latest news of Circle's layoffs came after the company's co-founder, Sean Neville, recently transitioned from CEO position to company board seat. However, Circle has denied any connection between the recent layoffs and Sean's transition.

How about crypto related Court battle of Satoshi Omoto?

In 2015, Australian-born technical expert Craig Wright claimed to be Satoshi Nakamoto, the founder of Bitcoin, but so far, most people in the cryptocurrency industry remain skeptical and even indifferent.

Most people may think that Craig Wright posing as Satoshi Nakamoto may slowly disappear into people's vision. In fact, Wright continues to make headlines.

This year, Wright still insists that he invented Bitcoin ten years ago and mined more than 1 million Bitcoins with his late business partner Dave Kleman. And after Klayman died in 2013, Wright claimed that he had put the bitcoin he dug into the "Tulip Trust".

However, Wright was indicted for Kleman's legacy in 2018 on suspicion of stealing up to 1 million bitcoins of Kleman. According to Kleman's family, Wright stole 550,000 to 1 million bitcoins, worth about $ 10 billion.

On October 31, Judge Bruce issued a ruling ordering Wright to transfer half of Bitcoin held before 2014 and the intellectual property rights of the Bitcoin white paper to Clayman's family.

In addition, Wright also sued Peter McCormack, a case that has caused widespread concern in the cryptocurrency industry. Wright sued McCormack on the grounds that McCormack repeatedly claimed that Wright was a liar, which was harmful to Wright's own reputation.

Recently, Craig Wright submitted another document purportedly to prove how he came up with the pen name "Satoshi Nakamoto."

Bitcoin ETF keeps being rejected by the SEC

On September 13, the Chicago Board Options Exchange (CBOE) withdrew its application for the VanEck / SolidX Bitcoin ETF. Since then, Bitcoin ETF applications submitted by Bitwise Asset Management and NYSE Arca have also been rejected by the US Securities and Exchange Commission (SEC) on October 9.

Later, investment management company Wilshire Phoenix submitted a new application for a Bitcoin ETF. Immediately after, investment management company Kryptoin Investment Advisors, under the leadership of Jason Tucent, a former World Gold Council executive, also submitted an initial registration statement to the SEC for the Bitcoin ETF.

But so far, the SEC has not approved any listing application for a Bitcoin ETF. According to the US Securities Exchange Act, one of the main concerns of regulators when assessing new commodity-based ETFs is to determine whether the underlying market can resist market manipulation. But so far, any proposal for a Bitcoin ETF submitted to the SEC cannot prove that the Bitcoin market can solve this problem. The SEC still does not believe that the applicant has the ability to prevent manipulation in the cryptocurrency market.

Currently, most financial professionals are skeptical about whether Bitcoin ETFs can obtain SEC approval in the short term. However, many people are very optimistic when it comes to medium and long-term prospects.

How about past and present performance of Cryptocurrencies in 2019 and 2020?

Overall, the cryptocurrency industry has seen some significant growth over the past year. Although the market is still volatile, more institutional investors are continuing to pay attention to the industry.

In addition, although the current market value and transaction volume of cryptocurrencies are showing a downward trend, a well-known trader believes that the destiny may be at hand, especially those who hold bitcoin.

Of all these projects, companies and individuals, Libra will likely remain the most influential in 2020. For most people, whether Libra will be launched in 2020 will be a very interesting thing. Once launched, the entire industry will be greatly affected.


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