2020 will be remembered as one of the most difficult years in modern society: countries and the entire population have faced economic constraints and crises, financial markets are still suffering from the severe consequences of the economic downturn, and Coronavirus has killed more than 2 million people. -19.
In any case, other sectors have been affected differently by a serious global health crisis that still seems to be far from over, even as vaccines begin to spread in rich countries. The economy has been radically digitalized, asset hedging is unreliable, and the cryptocurrency market has seen one of the hottest years since 2009, the year Bitcoin (BTC) was launched.
In fact, the cryptocurrency and blockchain markets have emerged in the face of a crisis that has barely saved the sector. Cryptocurrency funds are among the most profitable funds of the year, with Bitcoin and the largest digital currency reaching full-time high, large institutions and investors in the financial markets have invested in Bitcoin, and blockchain technology has broken barriers in the financial sector and in the production chain for a wide range of sectors.
What do you expect in the future in the face of a year of profound change? Cointelegraph Brasil has invited some of the country’s leading cryptocurrency and blockchain experts to map the market’s next steps.
In 2020, special attention will be given to corporate investments, which have finally reached the crypto world and promise another year of growth in 2021.
According to Rodrigo Burgess, founder of the Oxford Blockchain Foundation, large bitcoin contributions from institutional investors – who have bought even more BTC in miners’ production capacity – will increase in 2021: Investors, enabling new products to emerge as bitcoins emerge . Borges analyzes and believes that “2021 will be a year of consolidation and a strong development for the industry.” ”
For Tatiana Revoredo, a blockchain expert at MIT and columnist for Cointelegraph Brasil, storing cryptocurrencies from traditional financial institutions and introducing stack coins will be key in the new year:
“In the financial sector, we will see the launch of crypto-storage applications in Brazil, with potential participation from the traditional market. If regulators allow it, stack coins will play a prominent role in the Brazilian market with the potential to quadruple trading volume. ”
Cryptocurrency markets have had a year of extreme optimism – or greed, as the Crypto Fear & Greed Index shows. Bitcoin reached its lowest level near $ 3800 in March, and on December 16, it reached a full-time high of 2017 of $ 20,000. In Brazil, the currency set a new record in November when it reached 106,000 Brazilian reals.
Cointelegraph Markets reporter Marcel Beeman talked about the market’s behavior despite the setbacks it has had throughout the year. He noted that: “The 2020 and Ethereum markets have evolved in ways never before seen in terms of volume, price and contributions from well-known investors such as Paul Tudor Jones and Stanley Druckmiller.”
Pechman said that despite some declines in the cryptocurrency market, the impact of these errors on market performance was not so significant: “For example, the US Department of Justice filed a lawsuit against BitMEX – at the time the largest derivatives exchange – and the $ 280 Million KuCoin Hack, and none of them had any impact on the market.
Byman also noted that the 2020 DeFi race had led to heavy transaction costs on Ethereum, but did not affect market sentiment.
CEO Edelson Osorio agreed on the promising future of the DeFi sector, but warned of the scams:
“This is a very promising experimental market, but it should get more attention because attackers generally use scams and scams. Since this is a new market, the platforms may have problems with hacking, and due to the large existing centralization (although many platforms present themselves as Decentralized), there is still a risk of cash fraud.
When we talked about innovations and digitization from 2020 as a result of the COVID-19 crisis, Pechman also said that it will go deeper into 2021:
“The sequential innovation that includes Taproot, Schnorr and Lightning Network in Bitcoin, as well as the launch of Ethereum 2.0 Phase 0, paves the way for the next wave of larger, scalable applications that are interconnected with traditional economics. Final proof? Fidelity offers cryptocurrency covered loans.”