As we are on the edge of 2022, it's time to look back in 2021!
With some upheaval news, cryptocurrencies created a buzz in the market, and you indeed say that 2021 was "the year of cryptocurrencies."
The mainstream adoption of digital currencies has revolutionized payments, trading, asset management, finance, commerce, and passive income spheres.
Because of the positive sentiments around the globe, the market has seen more and more crypto investors and entrepreneurs this year. This evolution testifies that cryptocurrencies have become a popular option as an investment avenue that challenges traditional asset types like stocks, gold, and real estate.
As 2021 is ending, we're going to discuss all important events that influenced the global crypto sphere. Here they are:
Bull versus Bear: The Fight Continues
Since giant multinational companies like Microsoft and PayPal started accepting cryptos, Bitcoin has had a bullish run since October 2020. Overall, it has been pretty bullish in 2021.
With the announcement of Tesla, billionaire investors like Barry Silbert, Micheal Saylor, and Michael Novogratz held high positions in the market till April 2021 when...
Market correction brought Bitcoin from $65,000 to $29,000!
In October 2021, the positive vibes of crypto and Bitcoin ETF news brought Bitcoin on the top price of its history, reaching almost $70,000. In December 2021, Bitcoin has seen a steel fall to nearly $40,000. As you can see, it has been one hell of a ride for Bitcoin in 2021.
The Chinese government believes that crypto disrupts the economic order and services. Hence, the government passed a memo that considered cryptocurrency transactions illegal.
The crackdown in China opened gates for overseas bitcoin mining operations in the countries like Russia, North America, and Europe.
The USA became one of the largest hubs for Bitcoin mining operations and businesses.
In India, cryptocurrency got a mixed response in the beginning. However, the new bill was put on hold for now due to the Farmers' Bill.
El Salvador Caught Everyone's Attention
The president of El Salvador announced in September 2021 that El Salvador is the first nation in the world to allow Bitcoin as a legal currency.
Moreover, the government is also planning to have a Bitcoin City to attain zero CO2 emissions and become a Bitcoin mining ecosystem operated by geothermal energy.
Want to know more about Bitcoin City? Read Here!
NFTs - Tech for Artists of the Future
NFTs are Non-Fungible Tokens. It is basically a unique and non-interchangeable data unit on the blockchain. NFTs have been in the market since 2017, but this year, they took the market by storm when Punk 9998 bought for 124,457.07 ETH ($532,414,877.01 USD)!
Yes, around $532 million!
You can buy NFTs with cryptocurrencies or in dollars, and the blockchain keeps the record of those transactions. According to many NFT selling platforms, millions of sales volume went up in 2021.
World Wide Web inventor Tim Berners-Lee originally named Web 3.0 the Semantic Web. The purpose of Web 3 is to have a more self-sufficient, intelligent, and open internet.
According to Bloomberg, cryptocurrencies are not only to send or receive transactions, but they could be used to build a whole new web.
The idea of Web 3.0 is to create independent platforms and software that can build financial assets in the form of tokens and manage them for almost everything you do online. Since the invention of Web 3, DeFi projects have been thriving much.
Not a single person or entity, but a community of users are supposed to manage, operate and improve Web 3.
Decentralized Finance (DeFi)
Just like real-world, DeFi offers several financial services that work without intermediaries. This new, blockchain-based finance has truly disrupted the idea of digital finance. That said, many DeFi coins and even small-cap DeFi tokens soar to new heights due to this innovation.
Along with the DeFi smart contracts, the world has seen many top-notch decentralized exchanges (DEX) on which users can get the most out of their crypto. Swapping, staking, yield farming, and liquidity mining are all the revolutionary products of DeFi technology.
The "Musk" Effect
Finally, Elon Musk stayed in the headlines for almost the whole year regarding his decisions over crypto payments.
Earlier this year, Tesla Inc. announced its investment of $1.5 billion in Bitcoin and would accept Bitcoin payment for cars. After this news, Bitcoin's price was skyrocketed to the $48,000 mark from $38,000!
Within a week after this announcement, the prices bounced to $50,000, making history with one of its highest peaks.
As time passed, Musk tweeted that Tesla is holding the Bitcoin payments acceptance. But again, by the end of 2021, Elon Musk said in a virtual panel that Tesla is 'most likely to resume Bitcoin payments once the mining pace for the crypto reaches 50% renewables.
2022 - What's Next?
According to many crypto enthusiasts, 2022 would add more spices into the crypto world.
As many global companies have shown interest and started to invest and accept crypto payments, the significance of this digital currency has increased.
Next year, we might see more and more players adding to the market, bringing decentralized and crypto-based products and services. The governments worldwide might change their policies; some in favor while some in resistance.
There are still some questions hovering around the scope of cryptocurrencies. We surely need a platform that works as a converging point for crypto awareness in people.
Let's hope this new year of 2022 brings more excitement, success and innovation to the crypto world!