In the coming years 2020 can be seen as a turning point for cryptocurrencies. When Black Thursday hit in March, it wiped billions off the markets in a matter of hours. Anyone would have been forgiven for the thought that recovery would take years.
By December, the price of Bitcoin (BTC) had hit a new all-time high, breaking the $ 20,000 resistance to close to $ 24,000.. This marks the end of the first year in Bitcoin’s history that it was tested in the context of a global recession.
In fact, 2020 has seen too The number of active addresses is approaching the level of 2017, based on data from Glassnode. As much as speculation suggests institutional investors were the reason for Bitcoin’s meteorite rally, the data suggests it General acceptance is increasing.
This leads to a question: Which companies, governments and other institutions made the largest contributions to the adoption of crypto in 2020? In no particular order, here are the key Cointelegraph options:
When At the end of October, it became known that the payment industry giant was planning to integrate cryptocurrencies into its platformthe markets responded with pleasure. The PayPal messages confirmed what many had suspected for some time, but the announcement came with a surprise: PayPal also let it know As of January, users were able to use cryptocurrencies to pay to each of their 26 million sellers.
Not only has Bitcoin benefited from the news, but it appears to have created a cycle of positive reinforcement for PayPal stocks. Shares have increased by 17% in the months since it was announced. While users in the US can already use the service, PayPal will start crypto trading for its entire base of 300 million users worldwide from next year.
The currency inspector’s office
The relationship between cryptocurrencies and US regulators has long been strained. However, in JulyThings suddenly turned 180 degrees when The Office of the Currency Verifier (OCC) has issued a memorandum giving banks the green light to offer cryptocurrency management services.
The measure includes all national banks and federal savings banksThis effectively removes an important regulatory hurdle for the introduction of the cryptocurrency in the country. Not only is this a critical event for cryptocurrency holders, it is too paves the way for institutional adoption. Furthermore, Banks no longer have a reason to refuse services to legitimate cryptocurrency service providersprovided they are willing to adhere to the general KYC or “Know Your Customer” rules.
From a practical point of view, it will take some time for banks to have the security policies and infrastructure in place to handle digital assets. However, OCC’s actions are a significant advance in promoting crypto adoption in the US.
Dow Jones SP 500
Perhaps as a direct result of the OCC’s actions and certainly related to the ongoing bull market, In December, it emerged that Wall Street was officially moving into digital assets. SP Dow Jones Indices issued an announcement confirming that cryptocurrency indices will be launched from 2021. The message comes thanks to a Partnership with Lukka, a US-based blockchain data provider.
It is not yet clear which assets will be included as part of the indices. However, with 550 cryptocurrencies available, it seems like a fair bet that the vast majority of high-ranking tokens are included. The move could help push cryptocurrency institutional adoption further as larger market infrastructure makes it easier for Wall Street investors to access digital assets..
The CEO of Galaxy Digital may have done more than any other person to advocate Bitcoin’s adoption this year. After your company’s turnover increased by 75% compared to the previous year, stated that he believed Bitcoin price would hit $ 65,000 after surpassing its 2017 all-time high.
A few days later, he again recommended everyone invest 3% of their net worth in assets and hold it until 2025. In early December, he raised the stake again, encouraging investors to put 5% of their portfolio in cryptos.
Show that he is ready to use his money where he recommends it told CNN that it invested 50% of its own net worth in digital assets. A week later, Bitcoin broke its all-time high.
The founder of Barstool Sports had a temporary relationship with cryptocurrencies for most of 2020. In August Dave Portnoy, also known as “Davey Day Trader”, invited the Winklevoss brothers to his home to teach him Bitcoin. After that, started supporting small cap altcoinsThis prompts some members of crypto Twitter to comment on their lack of experience. A day later, he claimed he was on his way to becoming a crypto millionaire.
After Completely dig up digital assets, the moody businessman bought bitcoin again two weeks laterand this time declared that “my heart is crypto”.
Whether you laugh or roll your eyes Portnoy’s antics certainly helped draw attention to cryptocurrencies. Your influence on adoption therefore earns you a place on this list.
The Supreme Court of India
In 2018, the Reserve Bank of India dealt a fatal blow to cryptocurrency companies operating in the world’s second largest nation. As a result of government measures to prevent local banks from working with cryptocurrency companies, Indian citizens could no longer trade cryptocurrencies on exchanges, forcing them to participate in peer-to-peer networks and, in the case of those who wanted to trade with fiat, the black market.
In March of this year, the Supreme Court of India (SCI) issued a landmark decision reversing the decision and declaring it “unconstitutional”.. The move effectively legitimized cryptocurrencies to 1.3 billion people.
Although there have been some preliminary rumors that another U-turn may be imminent, the SCI ruling has given the Indian crypto scene a significant boost. In June, a wave of new exchanges began in the country, opening cryptocurrency services to millions of new users..
Was In February 2019, banking giant JPMorgan announced that it was planning to launch its own cryptocurrency to speed up payments within its network. In October of this year, JPM Coin was finally launched effectively a simple dollar-backed stablecoin. Given the size of JPMorgan’s global reach, the coin is estimated to save the global financial industry hundreds of millions of dollars in peripheral costs.
This move is unlikely to have any impact on crypto markets in general, simply because JPM coins are only used on JPMorgan’s closed network. However, it is reported that The bank processes approximately $ 6 trillion in transactions every day in more than 100 countries. It could be easy like that One of the most widely used cryptocurrencies worldwide by transaction volume. In mid-December, Goldman Sachs signed up to use JPM Coin for its repo transactions, or repurchase agreements, also known as asset repos.
Overall, decentralized financing has had an outstanding year, but that is fair to say The introduction of Uniswap V2 in May made 2020 a milestone in terms of the introduction of a decentralized exchange. By August, the exchange had exceeded Coinbase Pro’s trading volumeBy December, it had reached more than $ 50 billion in volume during its lifetime.
In addition, Uniswap accidentally fell victim to its own success when SushiSwap launched in August. The new exchange was created as a clone of the Uniswap code, but with its own token in the picture. The move, known as the “vampire attack,” appeared to threaten Uniswap’s dominance by draining the market’s liquidity. Worse still, the measure of SushiSwap spawned a number of similar exchanges, and several were set up in Binance’s newly introduced Smart Chain..
However, Uniswap last laughed after launching its own token in September. Distribution of UNI to anyone who has ever brought liquidity to the platform. The move helped Uniswap win the liquidity wars and it continues to outperform its rivals today.
Was In September 2019, the first reports surfaced about NBA player Spencer Dinwiddie planning a contract extension of $ 34 million. His plan was to sell contract-related digital tokens that investors could use to receive principal and interest.
It’s fair to say that Dinwiddie’s path to selling a token contract was far from easy.. After encountering opposition from the NBA itself, Dinwiddie launched a Gofundme campaign in May to raise nearly $ 25 million in BTC for participating fans to decide the fate of their next step on the team. . However, he closed the campaign after raising just $ 1,160 that he donated to charity. He later managed to sell 10% of the shares in the tokens of his contract with the NBA to eight investors.
It has to be said, however, that Dinwiddie’s support for cryptocurrency has helped draw the attention of public opinion. Grandstand report called him “The NBA’s Bitcoin Prodigy”.
Launched by eToro in September, GoodDollar is a social impact project that aims to achieve a universal digital basic income on a large scale. GoodDollar mints its tokens, called G $, based on the income generated by investing a basket of cryptocurrency reserves in DeFi protocols. They then distribute it as a daily basic income.
Since the platform was launched in September The company claims to have registered more than 40,000 people from 180 countries and distributed more than 14 million G $ tokens. The user They still cannot exchange their tokens for fiatbut you can use them to buy Online services via Facebook’s GoodDollar Marketplace, which currently has nearly 16,000 members.
The idea of a universal basic income has already received broad support, including from former US presidential candidate Andrew Yang. However, The coronavirus pandemic has further supported the idea as many people continue to be affected by the economic consequences. Therefore, GoodDollar is a fascinating experiment to generate a sustainable source of funding for a UBI.
Take away, this last entry is controversial. But It cannot be ignored that the biggest Bitcoin price rally in history occurred at a time when the world is battling the devastating coronavirus pandemic. Back in November, Cointelegraph highlighted the fact that the economic fallout from the virus has helped transform the perception of Bitcoin and digital money.
It was already clear beforehand that The pandemic accelerated digital innovation thanks to home orders and changes in the suite that followed the first outbreaks of the disease. After all, it was Ben Franklin who first remarked that “adversity gives rise to opportunity”.
The rise of DeFi and the epic bull rally of 2020 underscore the true potential of cryptocurrencies to help redistribute wealth and create new paths of value.. So if anything positive can be drawn from the catastrophic health crisis of 2020, it would not have been in vain.
On a more positive note, 2020 was an extremely promising year if you only look at it from the perspective of the introduction of cryptocurrencies. Furthermore, There are all indications that 2021 will not repeat the events of 2018 after the last epic rally. With this in mind, we can only hope for more good news from the crypto space in the coming year. Cheers and take care of yourself.
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