A year is a long time in cryptocurrency. In the past 12 months, we’ve seen big changes in investment trends and crypto adoption in banking. Financial institutions are exploring how to integrate digital currencies and blockchain into their services. This shift shows the growing importance of real world crypto use, as cryptocurrencies become practical tools beyond speculation.

Given its volatility, a lot can change in 365 days but, when looking back at the state of cryptocurrencies throughout 2019, it was certainly a year of positivity for cryptos. There was a general feeling that Bitcoin would retrace its steps in the last 12 months towards a value of $20,000, having reached levels as low as $3,000 before that. In terms of those predictions, the general direction of Bitcoin has been very consistent with these calls.

Is the outlook towards Bitcoin and various other cryptocurrencies likely to be as bullish for 2020? Let’s take a look at the bigger picture of cryptos for the next 12 months and make some bold predictions for what’s to come.

‘Bull’ market for cryptocurrencies set to continue

Bitcoin has long been the main indicator of the cryptocurrency industry’s health. As Bitcoin remains bullish in investors’ eyes, some may need to change their trading strategies. This could mean shifting from ‘buy-to-hold’ to medium-term ‘buy-to-sell’ strategies, while keeping some BTC in reserve. Meanwhile, real world crypto use is rising, strengthening Bitcoin’s role beyond investment. It is increasingly accepted for practical payments and services.

Crypto coins to be less susceptible to ‘crashes’

Bitcoin is closely connected to the global financial sector, partly due to the release of Bitcoin futures in retail trading. Traders and hedge funds can now easily shift capital from stocks and forex to cryptocurrencies. This reduces the chance of huge crashes in Bitcoin and other top digital currencies. However, new tactical risk cycles may still emerge.

More institutional funds to enter the crypto markets

It’s taken longer than most people would have expected, but institutional investment in cryptocurrencies has finally arrived in a big way. Retail investors have already put their faith in cryptos, but institutional investors are now starting to follow suit. While some institutional organizations will still be cautious as to whether now is the right time to ‘go big’ on the likes of Bitcoin, 2020 will almost certainly see more institutional capital hitting the crypto markets, as strategies for digital assets continue to evolve and formulate.

Cryptos to continue to revolutionize entertainment industries

The global entertainment industries are one of the main areas in which cryptos are having a transformational effect. First and foremost, they are reimagining how consumers pay for their fun online. Blockchain is not only giving digital consumers a safer and faster way to record transactions, the entertainment industry is also embracing cryptos like Bitcoin as a legitimate form of payment.

Popular e-wallets like Skrill now enable dual integration of credit cards and cryptocurrency, putting the power in the hands of consumers as to how they spend their conventional and digital assets. Many leading iGaming operators now accept altcoins such as Litecoin, DASH, and Bitcoin Cash too when making deposits and even withdrawals can be made to convert into digital currencies. It remains to be seen whether well-established iGaming brands like Betway Casino will follow suit, particularly as sites like this are continuing to grow in popularity thanks to their large catalogues of game titles and slots from tech innovators such as Microgaming. With a range of payment methods already available, such platforms could soon widen the variety of payment methods on offer to customers.

More ‘real world’ use cases for cryptocurrency

Aside from digital entertainment, many believe cryptos will find more real world use cases soon. This growing real world crypto use is expected to accelerate in 2020. Blockchain and cryptocurrencies will integrate more closely with real-life data. Investing Haven highlights Chainlink’s innovation. Chainlink provides a secure connection between blockchain technology and offchain data applications. Even major companies like Google are interested in using Chainlink’s network. It offers tamper-proof data inputs and outputs for complex smart contracts within any blockchain.

Ripple (XRP) adoption could kick-start widespread crypto adoption

There is a general feeling that the main reason cryptocurrency prices will eventually rise and reach new levels will be user adoption. Adoption-driven price increases did not materialize in 2019 and are unlikely to be widespread this year either. However, there are signs that user adoption is starting to have an effect. Take Ripple (XRP) as an example. Demand is beginning to rise for XRP given its links with Moneygram, with XRP being used to transfer one fiat currency into another. This is a clear example of crypto adoption in banking, where digital assets facilitate cross-border payments efficiently. Ripple generated $200 million to increase its adoption process and give it a leg up.