Cryptocurrency in 2020
Cryptocurrency has always been extremely unstable in a sense; however, the long-term trajectory has always proven to be increasing in value. As such, the cryptocurrency market as of May of 2020 has an impressive market cap of $265.545 billion. Since 2012, Bitcoin, the largest and most valuable cryptocurrency, has grown in value by an unbelievable 193,639.36%, showing how insanely fast the market as a whole is growing. There have been more major signs of how quickly cryptocurrency is being adopted into a more mainstream population. In fact, the nation of Turkey, which has the highest cryptocurrency adoption in the world, has reached a rate of 20%. More so than this is the recent news coming from PayPal.
Earlier this month, the virtual payment platform PayPal announced that all United States-based users would be able to buy, hold, and sell cryptocurrencies directly through their accounts. This is a development on the already burgeoning relationship between PayPal and cryptocurrency, which saw US-based users able to do precisely this after spending time on a waitlist. The weekly purchase limit for users has also now been bumped up from $10,000 to $20,000. The catch for those who wish to participate in the United States will be a series of rolling fees on transactions; however, those fees will be waived until the end of the year. Once put in place, there will be a $0.50 fee on transactions under $25, a 2.3% fee on transactions between $25 and $100, a 2% fee between $100.01 and $200, a 1.8% fee on transactions between $200.01 and $1,000, and finally a 1.5% fee on all transactions above that amount. Considering that Bitcoin alone is responsible for an astonishing $6 billion worth of transactions every day, these new developments for the cryptocurrency market will lead to astounding growth over the next few years.
The Future of the Cryptocurrency Market
The cryptocurrency market is already in the midst of incredible growth, yet most analysts believe that it is not even close to its peak. In fact, as of May 2020, there are over 40 million cryptocurrency users globally. This number is set to see major improvements over the next few years. In fact, the cryptocurrency market is expected to increase at a compound annual growth rate of 56.4% from 2019 to 2025. Considering the massive expansion of the market, the concentration of value remains at the top. In fact, 88% of the market value is consolidated within the top ten cryptocurrencies market caps. This has not dissuaded more cryptocurrency exchanges from cropping up. Instead, there are over 300 in existence in 2020, with expectations for further expansion in the near future. These cryptocurrency developments all further prove how massively expansive the market as a whole has gotten, especially in 2020.
The cryptocurrency world has seen both highs and lows in 2020. Its most valuable cryptocurrency, Bitcoin, dropped all the way down to $15,670 mere hours after rallying up to $16,355, which indicates how unsteady this market is currently. Despite these ups and downs, the long-term trends show that growth for most major cryptocurrencies — along with the market as a whole — will continue for many years.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.