James Wo’s 2020 Predictions Review
With the end of one year and the beginning of another, we have gone over the predictions that our Founder and CEO, James Wo, made for 2020. We analyzed his predictions of the market and compared them to the developments that took place during this historically difficult but significant year for the industry.
After analyzing each answer given by James we began with his outlook for the market, bearish or bullish? To which he shares an oracle-like vision of what would, in general terms, become true.
James predicted the beginning of the bull market very well, even prior to any knowledge or foresight that there would be a global pandemic, impacting the global economy. Moreover, he did assume that the first half of the year would be very difficult (March was the bottom of the COVID crash) and the second half would be the moment where the crypto market would see significant gains (during Q4 BTC and large market cap digital assets reached yearly highs or all-time highs).
Referring to the effects that the halving would have on the price of Bitcoin, similar to the previously mentioned point of the overall market, James maintained the notion that the market would not rise in a considerable manner during the first quarter of the year, which ultimately ended up crashing to lows unseen since before the 2017 crypto bull run. He also mentions the importance that capital allocation into this asset will create an increased demand while the mining of daily BTC is cut in half.
He also shares his thoughts, in a timeline extending past 2020, but nevertheless, he believes that BTC’s market cap will grow to be at least the size of Gold (over $10 trillion at the moment). He adds that STOs will probably be even bigger than that, based on the fact the stock market and derivatives markets are several times bigger than the gold market. Assuming that the future of assets is completely digital, and all shares and offerings will be tokenized, you could expect this outcome to be highly possible.
He goes on to share his thoughts on DeFi and how regulation could possibly intend to restrict growth of this disruptive and young industry by comparing centralized finance with decentralized finance and highlighting the benefits that a P2P business model would have in relation to regulations and restrictions.
Finally, James refers to important milestones that he expects to be achieved during 2020 such as the Polkadot mainnet which was successfully launched and DFG has been an important participant within the development process of this community.
The first steps of the Eth2 have also been taken successfully and the effects have seen ether rise to over $1,000. BTC, reaching all-time highs in price and market cap which we’ve all witnessed as it has risen to its ATH over $500 billion as a result of both the halving and the increased demand from institutional investors. Last but not least, the growth of lending platforms, especially in the DeFi area of the industry, which enjoyed large gains and continue to see rising volumes of users and capital enter the space.