In this article we will explore some future that we think could happen in 2020. And we will speculate on what effect those trends could lead to.
So lets get right to it, and check out which three trends that we think could happen in 2020.
#1 Banks are entering the crypto market for real
Until 2017/2018 cryptocurrencies were either laughed off or dismissed as a fade by most traditional banks. But with the emergence of institutional interest in cryptocurrencies beginning to look more serious from 2018. To the announcement of Libra from Facebook, JPCoin from JP Morgan we are now witnessing a shift in attention and belief in cryptocurrencies from traditional financial institutions.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
Traditionally banks are always the last to join the party when it comes to new technologies and trends. But in 2020 we speculate that a few outsider banks in Europe will start to lead the way. And this emergence of banks providing their customers with clearer paths to crypto investments in 2020 will be the start of a snowball effect. Where eventually in 2021 and 2022 most if not all major global banks (at least in Europe) will be heavily associated with cryptocurrencies. And in some way or another having crypto in their financial offerings.
We could for example read that a new law was passed recently in Germany that can help German banks offer crypto services more easily to their customers (Coindesk). More will follow. Especially when you realise that Binance a company that has been around for just a bit more than two years last year showed a net profit of $446 million (The Block Crypto).
#2 The adoption of Stablecoins will lead to a new fintech revolution
In 2019 we have read about stablecoins almost as often as we have read about Bitcoin in crypto, but also in non-crypto news outlets. With Libra, JPCoin, to USDT (Tether), USDC (Coinbase’s stablecoin), DAI and many others the market is flooding with them. And they have real value and they can be the true bridge from the underground and super-techy side of crypto to the traditional markets.
We think that in 2020 we will see new products and services launching that will utilise the power of stablecoins to help speed things on for the general cryptocurrency adoption journey.
We believe that a few key stablecoins will come forth as winners by the end of 2020. And with their help new innovative Fintech solutions will be on regular non-techy people’s minds, phones and apps.
#3 Go real or go bust
Like for any startup you need to at some point show value. And with that we mean value in some way, not just focus on profits or annual revenue for that matter. But at least user value and tech value. If you after 1-2 years don’t have a functioning product, or a functioning products with crap UX and poor users adoption then what are you even doing to fix that?
At some point those absurd ICO/IEO funds will run out and if you don’t have real people using, and liking your stuff then you will never succeed.
So it is time for your crypto startup to focus on the real stuff. Focus on creating user value, and then building on from there. With an early focus on understanding what users like and don’t like you will create a successful story to build on.
(Unsplash – Alvaro Reyes https://unsplash.com/photos/qWwpHwip31M)
And then the money will follow. So what we expect to see in 2020 is a lot of crypto startups to fall off, drain their funds and a few winners to emerge. The ones that knows that tech is nothing without a happy user on the others side. Because most of the users don’t care about the actual tech behind their products or services. Not really. But what they do care about is good, functioning stuff. Products and services that helps them in their lives. Things that makes their lives easier, better and more fun.
That includes you crypto platforms and exchanges, you need to up your efforts in making it super easy for average Joe and Jane to buy and sell cryptos. Follow the emergence of the like of crypto brokers like Changelly, Coinmama and Coinbase. They know that delivering on UX is as importance as delivering on tech. If not even more so what we expect to happen even more so in 2020 is the focus on UX from cryptocurrency exchanges. Like the likes of new instant-buying crypto brokers (examples here).