The State of Bitcoin Adoption in 2020

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How Bitcoin Adoption Will Help India Achieve Its $5 Trillion Economy

India has been one of the most notable emerging economies in the world in the last few decades. It currently stands at seventh place with a nominal GDP of $2.72 trillion and it is expected to overtake the United Kingdom in years to come. India’s PM Narendra Modi envisioned a dream of making India a $5 trillion economy by 2024. But achieving that dream for a country with a population of 1.3 billion might be a challenge if the current economic performance is to be considered. Indeed, bitcoin adoption in India could be the key to its economic future.

India’s Current State

If India’s GDP is to reach $5 trillion by 2025, its minimum annual growth rate will need to be greater than 10.8 percent every year. India’s current GDP growth has fallen sharply from 8 percent last year to 5 percent in the second quarter of 2020. Manufacturing growth in India slumped to a 15-month low in August due to lower sales growth, resulting in factories being forced to shut down production.

Another reason for slowing economic growth is India’s rising unemployment rate, which was 8.5 percent in October, its highest in the last three years. Foreign portfolio investors were net sellers of Indian stocks during the July-September quarter, withdrawing over $3.2 billion from Indian capital markets. The Indian central government’s fiscal deficit is projected to widen to about 3.7 percent in FY20, contrary to the plan of keeping it under 3.3 percent.

With all these lower-than-expected results, the Indian government has been taking a series of measures to boost the economy from the supply-side by pushing public capital expenditures, lowering the corporate tax from 35 percent to 25 percent. India’s central bank, the Reserve Bank of India (RBI) has cut its interest rate five times since the start of 2020 to boost spending.

Back in 1991, India adopted economic liberalization which helped to expand its economy and its role in private investment. Due to this radical reform, India achieved the status of a developing country but failed to adopt similar reforms which would have propelled it toward becoming fully developed. What the Indian government could do is adopt measures to stir the economy in an upward direction and also focus on opening the doors to supplement growth. Right now, India has a chance to live up to this potential by adopting another radical monetary innovation: Bitcoin.

Why Bitcoin?

Bitcoin is the world’s most powerful monetary innovation, with an idea to democratize exchange/store of value without any control from a single authority. Eleven years after its birth, it has been the best-performing asset class and, importantly, is on its way from being merely collectible to achieving the status of digital gold in years to come. Recently, Bitcoin’s hash rate just hit an all-time high of 111 EH/s, restoring confidence in its network despite the price dump. Every day (or, more precisely, every 10 minutes) as Bitcoin’s network becomes stronger than before, it will absorb more monetary value in proportion.

What’s important is that the rise in bitcoin’s monetary value will have a significant impact on India’s fiat currencies. Countries with the weakest monetary policies and currencies are most at risk of economic failure at the outset. Once they begin to fall, a domino effect of all fiat currencies which adopted the wrong monetary policy and engaged in excessive money printing will follow. This threat to fiat currencies is a large part of the reason why governments all around the world are hesitant toward directly adopting bitcoin. But governments should view bitcoin not as a threat but as an opportunity.

Bitcoin as the New Standard

Long before bitcoin, gold was considered a robust store of value. In 1944, 44 countries signed onto the Bretton Woods system, agreeing to peg their currencies to the U.S. dollar (which was, itself, declared to be backed by gold). Due to this structure and overall confidence in its economy, the USA achieved the status of superpower in decades to come. The same sort of robust growth could be achieved by India through bitcoin adoption.

First, India can open the roads for everyone to directly invest in bitcoin legally through banking channels. As it has done with gold, the Indian central bank can continue accumulating bitcoin as the country’s reserves. Due to bitcoin’s fixed supply of 21 million, accumulating earlier than other countries will have a significant advantage in years to come. These bitcoin reserves will be beneficial for carrying out public capital expenditures and aiding the private sector through serial reforms.

Whenever a new investment opportunity knocks on a country’s doors, it has the potential to have an entire ecosystem built up around it. Same is true for bitcoin. It will give rise to new entrepreneurs, new start-ups, new businesses, new innovations, new products and services, new consumers, and altogether new markets. It happened with the internet and smartphones.

It is happening with other technologies like AI and IoT. It is happening with blockchain technology and Bitcoin in some countries like Singapore, Germany, and Switzerland. Hence, it makes eminent sense to let bitcoin flourish in a regulated environment around the world. This philosophy may run contrary to the rebellious roots of some Bitcoin enthusiasts who strive to challenge the current financial system. But let’s be practical here. If bitcoin has to reach a population of 1.3 billion people like India, it will only happen through appreciation, acceptance and minor adjustments.

Bitcoin Adoption Through Access and Innovation

Coming to a common Indian individual, giving them access to invest in bitcoin through regulated channels will help increase their purchasing power. Currently, per capita income is just over $2,000 which is significantly lower than in other developed countries. Also, average retail investors are not allowed to have access to open global high performing markets, secluding them to limited options in India’s equities and commodities markets.

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If the Indian government classifies bitcoin as a good/commodity/currency, a population of 1.3 billion will get access to store their wealth in the hardest money resulting in an increase in overall per capita income over time. More importantly, providing access to the hardest money will help maintain a base level of demand during critical times like recession or economic slowdown. Even today, 190 million people in India are unbanked, with the help of bitcoin these people can have access to money management like savings and transacting.

Bitcoin’s on-chain growth will give rise to multiple Bitcoin companies on second/third-layer solutions. With open Indian Bitcoin regulations, it will create many significant Bitcoin innovations and also create a plethora of Bitcoin-related jobs in technological engineering, marketing, etc.

India can take a proactive approach toward bitcoin by first accepting the innovation and later recognizing it. This will help India achieve the status of a $5 trillion economy, or maybe beyond.

In conclusion, it is fair to say, very soon, that bitcoin will help India be more visible and we can become the powerhouse that we have the potential to be. Coupled with our aim to integrate financial inclusivity, we will be unstoppable, as far as booming economies go.

This is an op ed by Sumit Gupta. Views expressed are his own and do not necessarily reflect those of Bitcoin Magazine or BTC Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bitcoin 2020: Expectations Are Bullish For Both Price And Adoption

As the year 2020 approaches, Bitcoin is headed for what can be termed a promising, but also a testing time for the cryptocurrency, still, analysts, buyers, and sellers have assumed a receptive position in anticipation for what they perceive will be a bullish outpour.

Although the Bitcoin 2020 run is yet to break through its overall all-time high, the entire cryptocurrency space will see a truckload of interest and investment rate generated overtime. In the case of price growth, top industry players are expected to fall in line.

Adoption

The adoption rate for Bitcoin has and will always be highly anticipated. However, with the influx of Bitcoin futures, investors are certain to be on the rise in the year 2020.

Bakkt for one is pushing this marathon in less than a week when the Bakkt Futures trading is set to go live and analysts do not only predict a bull run for the next few months, Bitcoin futures will generally set the pace for reduction in Bitcoin volatility next year and in future.

At present, Bakkt is not the only firm aimed at implementing Bitcoin Futures, the likes of Binance has also recently launched its Futures.

Price

The decentralized nature of cryptocurrency, Bitcoin, in this case, create a value base that is driven by two major Economic factors; demand and supply.

Therefore, whatever affects these two factors fundamentally can result in a significantly bearish or bullish state for Bitcoin and presently, analysts believe that the supply of Bitcoin will largely be influenced by the Block Halving on the Bitcoin Blockchain protocol which takes place every four years, 2020 being the next.

The summation of it is that Bitcoin miners who use the protocol to mine Bitcoin will be rewarded yet again in BTC. The occurrence of the Bitcoin halving will lead to a reduction in the overall supply of BTC in the cryptocurrency market, thereby containing and cutting down on volatility for the Bitcoin market come 2020.

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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Bitcoin price prediction 2020: how high will BTC go?

The summer is over, but Bitcoin (BTC) could become increasingly hot. Some experts believe that its current record high – $19,783 in December 2020 – could have been a drop in the bucket and predict Bitcoin will go up to $50,000 by 2021. The year 2020 will be of utmost importance for Bitcoin. A lot is bound to happen, starting with a long-awaited Bitcoin block halving.

Bitcoin expectations: Indian Summer 2020

According to the latest Bitcoin price news, October 2020 may turn out to become really favourable time for the crypto, as two ETF applications are reviewed by SEC. Moreover, the Bitcoin community is enthused by the official launch for Bakkt – a Bitcoin futures platform – which finally happened on September 23rd 2020.

The Bakkt Warehouse launch was postponed several times this year the year. Within 48 hours of its official announcement Bitcoin, nicknamed the ‘king coin’, surged by more than 10%, resulting in a $400 price increase. However, after the launch, a new platform for institutional investors saw lower than expected volumes, which sparked the Bitcoin’s most recent sell-off.

Still, people expect that Bakkt will become a catalyst to propel BTC back to its glory days. There are several reasons to believe that Bakkt will bring wonders to Bitcoin. In fact, it’s the first futures platform, which may drive liquidity for Bitcoin market.

Offering futures contracts physically delivered with Bitcoin, the service will contribute greatly to further adoption of Bitcoin inside the traditional financial system. Bakkt is backed by the Intercontinental Exchange (the ICE) and thus stands a good chance at becoming the go-to trustworthy crypto futures platform.

Bitcoin forecast 2020: big institutional investors entering the cryptomarket

The unregulated nature of cryptomarket may be a significant reason why its growth is still suppressed. Although Bitcoin offers outstanding Return on Investment (ROI) rates, many institutional investors are still worried about the reliability of stepping into the unregulated territory.

With the official launch of the federally approved regulated platform, it’s more than likely that big movers will join the crypto market, driving Bitcoin adoption and good sentiment.

It looks like Bitcoin is still at the early adoption phase, with only a small portion of investors deeply involved in the market. The major goal now is to attract larger mainstream audience. The creation of a regulatory framework to protect users and provide confidence in financial instruments, such as crypto-assets ETFs, could prove useful.

Regulation might help to eliminate the risk of bad practice in the industry and could eventually bring more institutional investors to the market.

Bitcoin prediction 2020: Technological advancements

Bitcoin’s further success could also be aided by technological advancements. For now, it is still considered too expensive and slow to use Bitcoin as an effective alternative to traditional payment systems like Visa.

Under the new system, Bitcoin transactions are supposed to take seconds at low fees. It will make Bitcoin attractive for both consumers and retailers, particularly in e-commerce. In this way it could become similar to PayPal as a favoured payment method on eBay or Amazon.

BTC prediction 2020: Bitcoin block halving

A Bitcoin block halving is anticipated for May 2020. This event may also have a significant effect on the Bitcoin price, strengthening the common view that 2020 might be a record-breaking year.

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We are all aware of the fact that Bitcoin is not created endlessly – there may be only 21 million Bitcoin mined in aggregate. The reward for Bitcoin mining is halved every 210,000 blocks. At the very start, miners earned 50 Bitcoin per block mined, four years later the reward was halved to 25 Bitcoin. Today, they get 12.5 Bitcoin for one block.

In May 2020, the reward will halve again to 6,25 BTC. Therefore, the number of new Bitcoin entering the market will decrease. The demand for Bitcoin is forecasted to increase, but the supply can’t surge in line with it. When the demand exceeds the supply, the Bitcoin value will increase.

Some traders share a view that Bitcoin halving directly influences its price. For example, the first Bitcoin halving occurred in 2020. One year later, Bitcoin climbed its peak. In 2020 the situation repeated, just a year after the second halving in 2020.

How to explain it? The majority of the 1,800 Bitcoin mined every day are sold by miners directly, as they try to cover the energy costs. After the reward is halved, Bitcoin offering decreases, which may positively influence the BTC price.

Bitcoin price prediction: how much will bitcoin be worth in 2020?

2020 has been a relatively great year for Bitcoin and its major peers. However, by the end of September the cryptomarket has made a U-turn within a 24-hour period. Bitcoin (BTC) has collapsed under $9,000, losing more than 15% in an hour during a mysterious rapid market crash.

Things have been tough enough for Bitcoin, but the altcoins from the list of top 20 cryptocurrencies suffered even worse. Altcoins were bleeding heavily with top-traded cryptocurrencies, including Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), EOS and others experiencing double-digit losses. The total cryptomarket capitalisation has dropped by $10 billion to around $250 billion.

The sudden crash was presumably caused by a number of technical issues, but analysts still believe that the BTC value will continue to grow. Despite the fact that now Bitcoin is traded below $8,000 it could become an attractive investment opportunity for those who want to buy the dip. At the time of writing Bitcoin was priced at $7,822.

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