- Cryptocurrency has enjoyed an incredible 2020, with numerous events and developments pushing it to new heights
- We have chosen the five developments that have had the biggest impact on the space this year
- These developments have helped the cryptocurrency ecosystem push on in 2020 and will continue to impact it in 2021
2020 has been a huge year for the cryptocurrency ecosystem, perhaps the biggest on record. Dozens of stories and developments have pushed the sector onwards to greater heights of adoption, respect, and valuation this year, all of which have contributed to huge success for many aspects of the ecosystem.
To celebrate cryptocurrency’s immense 2020, we have picked the five top developments that we think have had the biggest impact on the ecosystem this year – five things that have positively impacted it in a huge way in 2020 and whose impact will be felt into 2021 and beyond.
PayPal’s Cryptocurrency Platform
PayPal’s cryptocurrency platform, rumored in June and announced in October, represents the biggest boost for mass adoption that the crypto space has ever seen. At a trice, 325 million PayPal US users suddenly had easy access to four cryptocurrencies, able to buy, store, and sell them, as well as spent them at PayPal’s 26 million retailers.
MicroStrategy Starting the Bitcoin Ball Rolling
When NASDAQ-listed software company MicroStrategy announced plans in August to convert a quarter of their balance sheet into Bitcoin, the entire ecosystem did a collective double take. Once the dust had settled and the details absorbed, the reputational boost to Bitcoin became abundantly clear.
MicroStrategy went on to spend $1.3 billion on Bitcoin over the rest of the year, opening the floodgates for other institutions to pour billions of dollars into Bitcoin and other cryptocurrencies. However, MicroStrategy and their CEO Michael Saylor will be remembered as the ones that started it all.
Ethereum 2.0 Launching
It was a long time coming. A looong time. First considered by Vitalik Buterin in 2014, the need for an Ethereum upgrade was clear in 2017, and it wasn’t until three years later that Ethereum 2.0 finally arrived.
With improved transactional capacity and speed, reduced transaction costs, and the ability to stake for rewards, Ethereum 2.0 is one of the biggest upgrades to any protocol in blockchain history.
There’s no denying that the coronavirus outbreak, which has been disastrous for so much of the population, has been great for cryptocurrency, and in particular for Bitcoin. When the U.S. treasury announced a $6 trillion rescue package, many financial commentators baulked at the sheer scale of money printing that was about to take place.
Institutions and hedge fund managers suddenly took a much closer look at Bitcoin, with its deflationary mechanism acting as the antithesis to the bottomless pit that was the Federal Reserve. Institutions duly followed, ploughing money into Bitcoin by the million as a hedge to an anticipated drop in the value of the dollar.
Bitcoin All-time High
Bitcoin breaking through its all-time high in December wasn’t just great for Bitcoin holders, it put to bed once and for all suggestions that it was a one hit wonder. It proved that there was enough demand for Bitcoin to not just take it back to all-time highs but to burst through it, with eyes on a much bigger target in 2021 and beyond, helped by a whole new breed of buyer – with very deep pockets.
Do You Agree?
We hope you have enjoyed our roundup of the top five developments of the cryptocurrency sector this year. Do you agree with our selection – is there something else that you think should have been in the list? Let us know in the comments, or on social media.