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Money in your e-wallet: How to spend 2020 with Crypto and Bitcoin

2019 left everyone puzzled as to where Bitcoin and alt-cryptos were headed. 2020 is one to keep a close watch on. Here's why

The number of engineers in the blockchain space has grown by a factor of 12 over the last 3 years In May, the per-block subsidy will drop from 12.5 BTC to 6.25 BTC We are already seeing mobile messaging payments in China as the preferred payment method

Bitcoin (BTC) has recorded its best start to the year since 2012 with a price increase of 22%, despite giving up some of its January gains this week,as it fell 10% over a period of seven days after climbing above $9,000 the weekend before last, according to Forbes Crypto Confidential.

On Thursday alone, the digital asset lost 3.6% in a matter of hours.

But anywhere and anyone you ask, the long-term outlook is positive and 2020 is just the start when the Bitcoin halving event takes place.

Let’s start with Blockchain, a good indicator as it is the medium where crypto transactions live.

Blockchain developer rumble

According to a new study by the Singapore-based blockchain startup Chainstack, the number of engineers in the open-source enterprise blockchain space has grown by a factor of 12 over the last three years.

Major money for Miners 

The world’s bitcoin miners brought in an estimated $5 billion in revenue during 2019, where $4.89 billion was in the form of block rewards or  12.5 BTC generated every time a new transaction block is created. The rest or some $146 million, was made via transaction fees. 

That reward number is set to change later this year in May when the per-block subsidy will drop from 12.5 BTC to 6.25 BTC. 

The next Bitcoin halving will thus reduce the current mining block rewards by half after each ten minute block and by the end of 2021, the supply of Bitcoin will be around 18.7 million, meaning that the market cap of Bitcoin would need to be approximately $1.87 trillion to achieve a price value of $100k, which some analysts predict it will reach

Ripple, other crypto/blockchain to IPO

Speaking at the World Economic Forum in Davos, Garlinghouse told the Wall Street Journal on Thursday that an initial public offering (IPO) is a “natural evolution” for the company.

“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side,” he said.

Just last month, Ripple raised $200 million in Series C funding, and valued the blockchain payments firm at $10 billion.

Ripple has raised a total of $293.6 million in funding to date, according to Crunchbase. The firm sold a total of $13 million in XRP in Q4, compared with $66.24 million in the previous quarter.  The price of XRP also declined by 22% during Q4. Cumulatively, Ripple has so far sold a total of $1.22 billion worth of XRP, according to The Block’s research.

Popularity of Crypto payment via Apps increasing

For a set of millennials, cryptocurrencies are the preferred investment vehicle over the stock market.

In January 2009, Bitcoin was created and then only a handful of cryptocurrency enthusiasts existed.

Today one of the largest exchanges Coinbase already has over 13 million users. It’s estimated there are over 22 million bitcoin wallets and already an estimated 5% of American’s already hold Bitcoin.

 We are already seeing mobile messaging payments in China as the preferred payment method when compared to online payment by over 78%.

Social networks have billions of active users on popular social and messaging networks such as Facebook, WhatsApp, SnapChat and Wechat.

As of 2018, Chinese WeChat has over 1 billion active users with unique widespread adoption by the users of its mobile payment app, where over 74% of payments are made on the app instead of cash or debit cards.  

In February of 2018, Telegram launched a private ICO raising $850 million from 81 investors and later raised a total of $1.7 billion. Telegram has over 200 million users and growing at a rate of over 350,000 new users daily. Telegram is adopting cryptocurrency as a payment mechanism. Facebook is aiming for mass adoption of cryptocurrency as a common payment method with stable coin Libra.