Whats in Store for Cryptocurrency in 2020

The last 3-years have seen a rollercoaster ride for bitcoin. The world caught bitcoin fever in late 2017, with the advent of the bitcoin bubble. Some analysts called this event the biggest financial bubble in history, with the BTC price skyrocketing to $20,000 by the end of the year.

However, 2018 was not so kind to cryptocurrency, and the price fell to a low of $3,300 before recovering to the $11,000 handle in August 2019. The recent drop below $8,000, has some analysts concerned that the next price target is back at $3,300. 

However, no-one knows for sure what in store for bitcoin in 2020. The best we can do is speculate on the events and market enthusiasm toward the cryptocurrency sector in the coming year.

2020 – The Bulls or the Bears?

When it comes to the price action of bitcoin, volatility doesn’t begin to describe the moves in the digital currency over recent years. Bitcoin gains a significant part of its price movement from the increasing adoption rates of the cryptocurrency around the world.

More retailers are accepting bitcoin for payment, and the growth in Bitcoin ATMs shows that more people are moving toward using bitcoin for daily transactions. 

Currently, the blockchain can only process 7-transactions a minute, and Visa can handle several million. However, the advancement in technology will continue to cut down on these problems and improve transaction speeds. 

Bitcoin price action is very sensitive to black swan events in the industry, and there’s no telling when these events might occur. However, the same issue exists in the global financial system, as well. One thing is certain; Uncertainty is the only thing you can rely on when trying to predict movements in the bitcoin price.

Bitcoin Hash Rates – Is Mining Profitable Below $6,500?

Despite the bitcoin price plunging to ward lows below the $8,500 handle, with pressure still mounting toward the downside, hash rates continue to climb toward all-time highs. 

Bitcoin miners are still acting aggressively into the final push for the last 3-million remaining bitcoins. The increase in mining is impressive, considering that Bitmain’s Antminer S9 mining rig — is currently unprofitable to run at today’s BTC price.

Many experts state that the price floor for bitcoin to remain profitable in the mining sector is somewhere between $4,500 and $6,500. Profitability depends mostly on the efficiency of the operation, electricity costs, and the current BTC price. 

The May BTC Halving – Are you Prepared?

Miners have already produced over 18-million bitcoins from mining the blockchain. The total quantity of bitcoin available to mine sits at 21-million. Therefore, the last 3-million bitcoin are available, and the pressure is on the mining community to compete for the remaining coins. 

In May 2020, the blockchain will experience an update, known as “the halving.” During this update, developers will cut in half the size of the blocks from 12.5-BTC to 6.25-BTC. As a result, miners will be using the same resources to compete for half of the coins they would typically produce.

As a result of the halving, they’ll be some $60-million taken away from the mining efforts at current prices every week. Many analysts expect the halving to create a considerable drive upward in price action. Analysts further argue that this could be the inflection point for the start of the next bull-run in BTC.

Adam Richards

About Adam Richards

Adam Richards is a semi-retired business professional originally from Bangor, Maine. He spent the majority of his career in sales and marketing where he rose to the marketing lead of a Fortune 1000 company. He then moved on to helping people as a career counselor that specifically helped bring families to self-sufficiency through finding them rewarding careers. He has now returned to Bangor for his retirement and spends his free time writing. This blog will be about everything he learned throughout his career. He'll write on career, workplace, education and technology issues as well as on trends, changes, and advice for the Maine job market and its employers.