What does 2020 look like for the blockchain sector? William Quigley, WAX’s Co-founder and resident trendspotter-in-chief, sees three big trends unfolding over the next year. These include a type of coin that dominated mainstream news headlines over the last six months, an anti-trend, and a final trend that he believes “has caused more excitement in the blockchain space.”
There are lots of opinions in the space about what’s coming:
Bitboy Crypto: “I believe 2020 will be a year when we see cryptocurrency use cases skyrocket. I believe Decentralized Applications will get bigger and better. With each passing year, developers & programmers become more familiar with building on the blockchain. This is similar to the evolution of website designs. We look back and laugh at websites from the 90's. But today, it’s a robust artform. Also, I believe alt coins will return to prominence, and following the Bitcoin’s halving in May, 2020 I look for a resurgence in alt coins as people take profits from Bitcoin and look to hedge their earnings.”
Crypto TokenTalk co-host Nikki Del Principe: “As tech giants such as Facebook, Google, and Amazon continue to amass wealth while the jobs worked by regular people are threatened by automation, we will see growing demand for decentralized systems that empower people with control over their own value and data. Heading into 2020, I predict we will see the rollout of more real-world applications that address this issue through seamless integration of cryptocurrency and blockchain technology.”
Crypto Beadles: “In 2020, Cryptobeadles anticipates seeing examples of: People outside of crypto adopting, finding value in, and replacing something from the noncrypto world, because it works better than whatever that is they currently use. Something I would love to see take off would be in the media space -- a better, more transparent and far less centralized version of YouTube that brings true value and freedom to the masses without the fear of political or unwarranted censorship, demonetization, or sale of our data for the sole benefit of the platform. It would be a means of self-expression and monetization for each user, not just the platform."
So what are the three big trends in blockchain for 2020 according to William Quigley? Watch the latest episode of WAX ON to find out, and subscribe to the WAX YouTube channel for more episodes of WAX ON with William Quigley each week.
Today I'm going to talk about three big trends in blockchain unfolding now. Trends that I see picking up lots of steam in 2020. And why is trend spotting so important? Because trends are like signposts or signals. Signals that indicate something is happening or going to happen. In our case that something of course is growth in the blockchain sector. Like maybe faster adoption of a specific category of cryptocurrency.
So here are the trends I'm looking for in 2020.
First - prolific stablecoin adoption. Despite all the drama with Libra coin, despite the issues that Tether has faced, the world won't be able to get enough stable coins.
We created Tether the very first stablecoin to do exactly what Mark Zuckerberg is attempting to do now with Libra. There simply isn't a better fair way to facilitate cross-border commerce for consumers. So look out for growth in the number of stablecoins in 2020. By the way, if the United States restricts the creation of stablecoins, say by labeling them as securities, expect them to take off in other parts of the world.
Why are stablecoins such an important trend to watch? Because the more stablecoins there are, the better it is for all categories of cryptocurrencies.
Trend number two, the growth in futures contracts. Now by the way this is an anti-trend. If you're looking for cryptocurrencies to go up in price unabated then the growth of futures contracts is not your friend. Yes futures contracts do indicate a growing interest in cryptocurrencies as an asset class but keep in mind what their purpose is. They strangle volatility and a lot of people in the crypto industry like volatility.
John McAfee for instance, right now he's hoping for a lot of volatility in 2020. He has a lot riding on that. Snip snip. OK. I believe there is no greater force directing downward pressure on the price of bitcoin than the use of futures contracts and the more broadly deployed futures contracts are in the crypto industry, the more range bound you will see all cryptos in 2020.
The third trend; it's also the most important trend that we will see taking off in 2020. I'm talking about the explosion of DeFi or decentralized finance. DeFi will be the big story in crypto next year. I don't believe anything else has caused more excitement in the blockchain space than DeFi and in fact this subject is so important.
I'm going to do a separate video on the emergence of DeFi but let me just highlight a few important aspects of DeFi here. DeFi today and probably over the next year is really about two things: collateral and lending. So first collateral. That means turning your crypto into a more fungible asset. There are lots of projects working on the collateralization process and some huge ones coming in 2020.
Oh and what do you do with all that crypto you've turned into a fungible collateral? Well you might choose to borrow against it so DeFi has a lot to do with lending. Lending in a manner by the way very different from our current banking system works.
There are no taxpayer insured deposits behind these loans. DeFi is a closed system so it does not produce the systemic shocks we saw with fractional reserve banking.
So that's it. Look for these trends to really drive the blockchain industry in 2020.
Let me close by saying something about following trends and market signals. Yes they have predictive power, but that’s power not certainty. They are not all-powerful oracles. Think of them like breadcrumbs leading you to a more informed state of awareness which means you have a better educated opinion about the future of blockchain and cryptocurrencies.
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