2020 Vision: Bitcoin and Crypto - Mine Digital
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2020 Vision: Bitcoin and Crypto

January 6, 2020 • 
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Matt & Tom face off in the 1st Annual Mine Digital Bold Predictions for 2020 A.D.

Matt: Tom, let’s call this “2020 Vision – surely no one else will come up with that?”

Tom: Let’s run with it, we’ll only find out with hindsight

Matt’s first call: Bitcoin to remain choppy. The entire world is binary on Bitcoin – it’s either going to zero or unlimited. Go figure.

Zero isn’t an option, sorry to the non-believers, the genie is well and truly out of the bottle and use cases for Bitcoin increase. But of course, lower prices are an option and as the broader digital market matures, HODLers and investors need to accept with that comes a wider trading universe which is more susceptible to market forces which are also developing.

Until now, technical indicators and analysis has driven much of the price action around certain points on the chart.  This is mostly in and around times of extreme price surges or falls following regulatory noise such as recent Chinese straddling (market manipulation) or US posturing.

But equally, unlimited or huge price increases seems just as unlikely. Hope is not an investment strategy. I can see a market that oscillates between 5,000 and 15,000 as the broader traditional market increases its presence and establishes itself in the market.

BTC on a daily

Tom’s first call:  I think that we are in for a bumpy ride 2020 and that Bitcoin has the potential to see old high watermarks.

Yes, Bitcoin is bearish at the moment.  The timeline on realising the miracle of a new financial system is not as immediate as millennial punters may demand, but the real use cases in de-centralised finance and distributed ledger and computing systems are emerging in more sophisticated examples.

It is only a matter of time before the space begins to crack into key markets of traditional finance, helped by a greater understanding of the space as per my next call. As these events play out and as traditional finance gets involved after seeing the progress that has been made, the 2017 high is an achievable watermark, given the macro story.

Matt’s second call: The Halving is built in. (sorry).

Don’t buy Bitcoin because you think the halving will magically increase the price. That ship sailed last time. Somewhere around May this year the phenomenon will take place. A lot of n00bs think that the supply of Bitcoin will halve. It won’t. If it did do that it would be a good idea to buy.

The halving simply halves the supply of bitcoin which can be received via mining, roughly every four years. This makes it harder for miners to extract the balance of Bitcoin yet to be mined, up to 21 million in total which is about 3 million more to go.

BTC on a daily

Tom’s second call: It would be interesting to know how many miners are hoarding compared to supplying the market on an ongoing basis. My next call is that 2020 is the year that Bitcoin converges with traditional finance

The US Federal Reserve has promised the global financial system almost half a trillion dollars of liquidity to avoid being locked up going into year-end.  Gold is returning as a viable trade both in a possibly inflationary environment as well as being a physical tether to reality for the financial system for holding monetary value.  These concepts, popular in Bitcoin are gaining in importance in the traditional financial system and we predict that these common ideas bring the two systems closer in the new year.

Matt’s third call: Ethereum may never be the same…

Ask yourself why Bitcoin is roughly 1/3 the price of its 2017 high and Ethereum is roughly 10%?

During the tornado of ICOs from 2015-17 Ethereum was the contract upon which most of them were funded. It became a placement mechanism and once that period passed the price simply hasn’t recovered. Why?

What goes in must come out. As ICOs liquidate and fall apart, those left with fiat in the project simply withdraw the balance into ETH and then liquidate into BTC as the price has held up, or back into fiat.

ETH on a daily:

Toms third call: I loved Ethereum as a concept, but it has some stiff competition these days. Perhaps quantum computing can solve some of the problems in decentralised computation? My third call is that in 2020 quantum computing is explored for its virtues to Blockchain rather than it being a threat.

Quantum computing was originally conceived of as a potential threat to Bitcoin, but what quantum computing appears to actually do better than anything else is the kind of specific, rigid computing calculations necessary to build and defend a de-centralised computing network.  So although it has initially emerged as a kind of threat to the blockchain universe. We think that quantum computing will be used to solve complex blockchain problems such as the blockchain trilemma and to secure a functional and operational network.  

Matt’s fourth call: Ripple’s ODL is a game changer

Scorned among the crypto community as a centralized and commercial proposition instead of the peer-to-peer network that is the vision of most true-believing crypto enthusiasts, Ripple has many detractors.

And whilst its price has dramatically reduced, it’s use cases increase and business partnerships rise. XRP is still the most cost-effective way to transport across exchange or wallet and the price is so low now that as a value proposition it exceeds all top 10 coins with the possible exception of BTC.

The price drop is in line with ETH, and as a good friend of mine and trading partner used to say, “You cannot bomb rubble”. Value here for XRP looks X-ceptional…

XRP on a daily

Toms fourth call. This is a similar vein of thought, I think that decentralized finance has a huge upside potential, especially given the upcoming criticism of the traditional financial system and perceived failure of monetarist Economics. Let’s explore the idea that 2020 is the year that de-centralised finance becomes viable

At the moment there is upwards of $100 billion dollars behind digital assets, as well as many of the brightest minds in tech, finance and entrepreneurialism working on making this a reality. The foundations are solid in the Bitcoin protocol, achieving the potential of the technology is highly ideologically motivated and it has significant resources behind it. By comparison, traditional finance is looking forward to its worst year since the Nixon shock in 1971. Trust in governments and linear hierarchies are being obliterated around the world and decentralisation is occurring everywhere as a new paradigmatic reality.

Tom: What are on our cards for 2020?

Matt: In 2019, Mine Digital has had a busy year:

Established a partnership with VSYS to develop adoption and extensive use cases of blockchain technology for internet and financial services, V SYSTEMS and Mine Digital have joined forces to build a blockchain network for global adoption. As background, V SYSTEMS (also known as VSYS) is a blockchain database cloud project that aims to create a secure underlying infrastructure platform for blockchain database.

  • CEO Grant Colthup was admitted to the board of Blockchain Australia.
  • Built a high-volume low-cost OTC option in their RFQ platform
  • Created a low-cost, efficient, dynamic, integrated and secure order-book exchange platform

Heading into 2020 Mine Digital is building on that foundation by planning an alts token exchange and continuing the development of VSYS products. The business continues to improve itself through product development, strategic partnership and improving internal proficiencies to become the regions premier platform for digital assets.

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