Are you planning to buy or invest in cryptocurrencies? Finding difficulty in deciding the best cryptocurrency? Wondering why Bitcoin and Ethereum are always under the limelight? Why will the market of BTC and ETH will explode? This article will cover everything. So let’s get started.
Table of Contents
- Cryptocurrencies Revisiting 2020
- Bitcoin and Ethereum Shows No Sign of Stopping
- Why are BTC & ETH Exploding?
- The Verdict
Cryptocurrencies Revisiting 2020
Cryptocurrencies are digital currencies, also known as virtual currencies, that control the generation and transfer of funds by utilizing encryption techniques. In comparison to conventional fiat currencies, cryptocurrencies allow counterfeiting or double-spending almost impossible.
As the world is getting ready for financial and banking transformations., crypto experts, blockchain developers, and technocrats are working hard together to bring cryptocurrencies for general usage. The concept of cryptocurrency aims to transform banking as there will be no purpose to pay banks a few percent every time they swipe his/her credit cards. Few consider cryptocurrencies as an excellent long-term, albeit high-risk investment; on the other hand, few cryptocurrency traders consider it a future. Thus, in a world full of failed financial intermediaries, cryptocurrencies can be considered to bring a revolutionary change.
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Bitcoin and Ethereum Shows No Sign of Stopping
If you are a crypto investor or a crypto enthusiast and planning to participate in the crypto market, there is a sign of relief. According to crypto specialists and experts, 2020 is going to be a booming year and for the years to come, especially for Bitcoin(BTC) and Ethereum(ETH).
Talking about the first-ever cryptocurrency, Bitcoin is the most used cryptocurrency to date. Bitcoin’s main aim is to become global, P2P, fully decentralized, digital cash that’s isolated from any central authority. The reason why it is still the most likable cryptocurrency is because of the reason that it has the highest liquidity in the crypto space. The higher the liquidity ratio, the easier it is to sell a cryptocurrency at market price.
A recent, detailed study has projected that bitcoin’s price will hit nearly $20K this year and continue to grow to nearly $400K by 2030. According to Bitcoin.com, BTC touched a top on September 1, as prices touched $12,044 per coin.
June edition of the Crypto Research Report (CRR) predicts the price of various cryptocurrencies, including Bitcoin, Ethereum, and others. They expect the price of bitcoin to rise to $19,044 in 2020, $341,000 in 2025, and $397,727 in 2030. Ethereum’s price is expected to reach $331, $3,549, and $3,644, respectively, while bitcoin cash’s price should climb to $414, $6,690, and $13,016 during the same time periods.
Why are BTC & ETH Exploding
Let’s figure out the reasons why their prices are rising.
Talking about Bitcoin, the introduction of bitcoin crypto debit cards is a significant factor for the rise of Bitcoin worldwide. Such credit cards aim to transform financial services while introducing major improvements in transaction speed, privacy, and cost. Blockchain developers also believe that active use of the Lightning Network may also change the BTC ecosystem. Lightning Network is a proposed solution by blockchain developers and experts to increase the Bitcoin network’s scalability by allowing “off-chain” transactions.
Reason for Ethereum’s Boom
DeFi: The Biggest Catalyst
The introduction of DeFi protocols, such as COMPOUND, Maker, Aave, and others have witnessed a substantial increase in users. DeFi is gaining a lot of public attention because it encompasses all facets of financial services, including lending, borrowing, and trading under decentralized infrastructure, and provides consumers with an open financial service ecosystem that is accessible to everyone and operates without any central authority being involved.
As users use DeFi services, they ought to send data in the form of smart contracts and transactions, and mostly, users have to utilize decentralized exchanges(DEXs) to buy different tokens. With the advent of DeFi, the Ethereum network was overcrowded, and as the network clogs, consumers are forced to pay higher gas to process their purchases.
Positive Progress of Ethereum 2.0
ETH 2.0, also known as Serenity, is the latest update in the Ethereum community to boost the efficiency and functionality of Ethereum in various ways. ETH 2.0 will not only improve transaction rates, but it will also increase the blockchain’s own scalability and programmability, without any security compromises. The latest version is expected to increase transaction speed from 15TPS to thousands of TPS, and with Eth 2.0, staking enables the users to gain incentives when miners are removed from the ethereum blockchain network.
The introduction of Eth 2.0 has opened the door of opportunities for the entire Ethereum community and Ethereum Developers.
From the above discussion, it is clear that BTC and ETH are here to stay. If you want to know all the ins and outs of cryptocurrencies and learn trading strategies, get enrolled in Blockchain Council and become a Certified Cryptocurrency Trader today!