The markets have revealed a lot in 2019. We now have to use some of those insights coming into 2020. Considering what happened in 2018, 2019 wasn’t such a bad year per se. We had a bull run during the first half of the year, although the prices stagnated and dropped at some point, it’s safe to say the year was good.
Now, coming into 2020 and 2021, we all expect a bull market. That is not a secret. In fact, studies show that we have used the term bull market in 2019 so many times, it ranks #3. A bull market doesn’t start with anything spectacular. Only a secular move, slowly with rough sell offs then to a strong and long term rally.
We have learnt a lot during the year and we can confidently know what is working and what is not for crypto and blockchain. We have carried on a few things that we think should be helpful in 2020 going forward. These insights come from research in the industry, although some are generalized. Here we go:
Only a Few Add Value
Only a limited number of crypto add value. An estimate of only 1% of over 2000 cryptos in existence. Many of the crypto projects are a scam. Others are too geeky, meaning they focus too much on the tech specification and not how the technology solves a real world problem.
Only Adoption Drive Crypto Prices to the Long Term
We have also learnt that only adoption in the real world drive crypto prices in the long term. Only a handful have shown signs of adoption going into 2020. These are the cryptocurrencies that will hold for the long term.
What about the Failing Projects?
We also have something to take from failing Libra. Creating a successful cryptocurrency is really complex, even for giants like Facebook. The most successful crypto projects are said to be growing at a tortoise pace. Coming into 2020, we need to focus on a growing ecosystem with real life use cases for a successful crypto. Now, not everyone finds the right recipe to success, majority fail.
XRP, the Most Successful Project
Ripple is so far the most promising project out there. If you look at the accomplishments in the last 18 months, especially the acceleration of use cases, not many projects can replicate this success.
Disappointing Crypto Based Apps
We also believe that there is something to take from the disappointing stats of crypto based applications which remain very low. The magic must be somewhere else, obviously not in consumer oriented apps.
Should we give up on crypto and blockchain in 2020 and beyond? On the contrary, we should learn. We know that a handful of them actually do well. For the stock investors the choices is really tough with only a handful of them to hold. But we all expect an acceleration in 2020 and you don’t want to miss that. I promise you.