Up until now people around have a variegated opinion about cryptocurrency exchanges. This is because of the happenings such as the rise in the value of Bitcoin in the year 2017 ($19,783,06/ Bitcoin) and other security issues in the exchange platform. Above all these opinions, Bitcoin is said to reach the value of $20K USD in 2020. Tech Expert, John McAfee, see bitcoin to reach a value of $1million USD in 2020.
Many companies are now trying to adapt Blockchain technology with their own private version of Blockchain and cryptocurrency as there are many benefits present for a business that gets associated with Blockchain. In the year 2018, near to 60% of market value of Blockchain technology came from financial sector, but at present the blockchain technology is also favoring the sectors such as healthcare and agriculture. Based on statistical analysis the worldwide spending on Blockchain solutions is said to grow from 1.5 billion (2018) to 15.9 billion in 2023.
Investment funding in various Blockchain technology startups have grown significantly from $1 million USD in 2017 to $1 billion in 2019 due to the spreading interest in the Blockchain technology over the years. This has resulted in the increase of Cryptocurrency exchanges in 2019, with blooming exchanges trying to meet up with the ever increasing demand of the scenario.
How will this Impact Exchanges?
As more mainstream companies try to adopt to Blockchain technology the trading volume and adoption of exchanges are expected to rise with varied listed cryptocurrencies. The rise in hybrid exchanges with the combinations of both the centralized and decentralized exchanges give the users a reason to adopt cryptocurrency and exchanges.
But the most important change that has positively impacted Cryptocurrency exchanges in the Initial Coin Offering that supports various blockchain projects to carry out their token sale on exchanges and help to list their tokens automatically on the exchange platform. This increases the liquidity and volume of the exchange.
- The Bitcoin halving- where the number of generated Bitcoin rewarded per block will be halved (i.e) will be divided by 2 in May 2020 will positively impact the price of Bitcoin.
- The establishment of insurance for investors on Cryptocurrency exchange platforms in Q4 of 2019 which may act as a turn point in Crypto Space.
- Also with many existing Exchanges releasing exchanges coins like Binance and KuCoin, has helped to build up trading volume on the exchanges.
- According to sources given by Coindesk, two US lawmakers have suggested federal reserve to consider developing ‘National Digital Currency’ as it may change structure of Currency transactions for good.
- The worlds leading social media platform Facebook announced the launch of its own cryptocurrency called the Libra. This will probably increase the Crypto users as Facebook has the largest number of users.
These reasons are the base to say that the future of Cryptocurrency and its exchange are promising. 2020 is bright with many opportunities for Crypto Exchanges, but at the end one thing is certain that Crypto exchanges are here to stay. Thus Cryptocurrency Exchange development is totally worth it, as a Business for Entrepreneurs to make a huge entry in the Crypto space.