2020 will be remembered as one of the most difficult years in modern society: countries and the entire population have faced economic constraints and crises, financial markets continue to suffer the severe consequences of the economic downturn, and Coronavirus has killed more than 2 million people. -19.
Despite this, other sectors have been affected differently by the severe global health crisis, which is still far from over, although vaccines are beginning to spread in rich countries. The economy has been radically digitalized, hedge stocks have triggered mistrust, and the cryptocurrency market has seen one of the hottest years since 2009, the year Bitcoin (BTC) was launched.
In fact, the cryptocurrency and blockchain markets have emerged in the face of a crisis that has barely saved the sector. Cryptocurrency funds are among the most profitable funds of the year, Bitcoin and the largest digital currency have reached full-time highs, large institutions and investors in the financial markets have invested in Bitcoin, and blockchain technology has broken barriers in the financial sector and in a number of sectors.
What do you expect in the future in a year of profound change? Cointelegraph Brasil has invited some of the country’s leading crypto and blockchain experts to map the market’s next steps.
Institutional investment set for 2020, finally arrived in crypto, promises another year of growth in 2021.
According to Rodrigo Burgess, founder of the Oxford Blockchain Foundation, the large Bitcoin contributions from institutional investors – who have bought more BTC than the production capacity of minerals – will increase in 2021: “When it comes to bitcoin, I assume there will be demand growth from institutional investors. This allows new Bitcoin-related products to be displayed. ”- Borges analyzes. He also believes that “2021 will be the year of consolidation and strong development for the industry.”
For Tatiana Revoredo, a blockchain expert at MIT and columnist for Cointelegraph Brasil, storing cryptocurrencies from traditional financial institutions and introducing stack coins will be key in the new year:
“In the financial sector, we will see the launch of crypto-storage applications in Brazil, with potential participation from the traditional market. If regulators allow it, stablecoins will play a prominent role in the Brazilian market, and trading volume can quadruple.”
Cryptocurrency markets have gone through a year of extreme optimism – or greed, as the Crypto Fear & Greed Index shows. Bitcoin reached its lowest level near $ 3800 in March, and on December 16, it reached a full-time high of 2017 of $ 20,000. In Brazil, the currency set a new record in November when it reached 106,000 Brazilian reals.
Cointelegraph Markets reporter Marcel Behman talked about the market’s behavior despite the setbacks it had during the year. He noted that: “The 2020 and Ethereum markets have evolved in ways never before seen in terms of volume, price and contributions from well-known investors such as Paul Tudor Jones and Stanley Druckmiller.”
Pechman said that despite a certain decline in the cryptocurrency market, the impact of these errors on market performance was not so significant: “For example, the US Department of Justice sued BitMEX – then the largest derivatives exchange” and $ 280 million from a KuCoin hack, none of which had an impact on the market. ”
Pehman also noted that the DeFi race in 2020 had led to heavy transaction costs on Ethereum, but did not affect market sentiment.
CEO Edelson Osorio agreed on the promising future of the DeFi sector, but warned of the scams:
“This is a very promising experimental market, but it needs special attention because attackers generally use scams and scams. Since this is a new market, the platforms may have problems with hacking, and due to the large centralization that exists (although many platforms present themselves on It is decentralized), there is still a risk of cash fraud.
When we talked about innovations and digitization in 2020 as a result of the COVID-19 crisis, Pechman also said that it will go deeper into 2021:
“The sequential innovation that includes Taproot, Schnorr and Lightning Network in Bitcoin, as well as the launch of Ethereum 2.0 Phase 0, paves the way for the next wave of larger, scalable applications that are interconnected with traditional economics. Final proof? Fidelity offers cryptocurrency covered loans.”
In the domestic market, Osório is investing in the cryptocurrency market in Brazil, which is already used by the country’s largest cryptocurrency exchange, Mercado Bitcoin.