2021: The defining year of cryptocurrencies globally; As crypto moves into the mainstream, 2021: The Year of Bitcoin

2021 will be remembered as the year of crypto for a number of reasons

From mainstream adoption, to the emergence of new digital currencies, to challenging central authorities over the concept of ‘currency’, 2021 will be remembered as the defining year of cryptocurrencies on earth. Global. As the world prepares for Web 3.0, people have now been exposed to the idea of ​​adopting a digital ecosystem for currency in the form of digital tokens, instead of cash.

Bitcoin – the world’s oldest and largest cryptocurrency – has gained mainstream acceptance with El Salvador, amid its dizzying rise over the past year. In addition, blockchain-based technology has spawned non-fungible tokens (NFTs) – which are not interchangeable – that distinguish themselves from cryptocurrencies.

The positive sentiment around crypto around the world is not only encouraging investors but also a whole new batch of crypto entrepreneurs with the intention of transforming the global financial system. The rise of crypto investors globally proves the fact that it has emerged as the most popular investment avenue challenging traditional asset classes such as gold, stocks and real estate.

With major global announcements in the crypto market, 2021 is truly the ‘year of crypto’. As we near the end of 2021, here is a list of all the key events that have helped make crypto the primary voice of the future.

Elon Musk’s $1.5 billion investment

Billionaire Elon Musk’s electric vehicle maker Tesla Inc has announced a $1.5 billion investment in bitcoin under a changed policy and announced it will accept the currency as payment for cars. Following Tesla’s announcement in February 2021, the bitcoin price took a massive leap past the $48.00 mark — its biggest daily gain in over three years. Within a week, bitcoin made history past the $50,000 mark for the first time, gaining even more widespread adoption among major investors, especially after Tesla’s move.

Higher Bitcoin Main Acceptance Vault

Bitcoin has seen a broader rally since October 2020, since US-based online payments company Paypal allowed customers to use bitcoin on its network. Still, Tesla’s investment becomes the latest in a string of mega-investments that have sent bitcoin skyrocketing, as American companies and traditional money managers begin to take the asset seriously.

In the same month, Bank of NY Mellon announced that it had created a new unit to help customers hold, transfer, and issue digital assets. The world’s largest publicly traded business intelligence company – Microstrategy has announced that it will purchase an additional $600 million in bitcoin. The company owned nearly 72,000 coins at the time of announcement in February 2021, valuing its bitcoin holdings at around $3.6 billion.

Cryptocurrency clamp in China

In May, the Chinese central government published a memo outlining the crackdown on Bitcoin mining and trading. By June, electricity supplies to industrial-scale Bitcoin mining farms in the Zhundong economic zones of Xinjiang and Sichuan were directed to close.

Chinese authorities believe that cryptocurrencies disturb the economic order and facilitate illegal asset transfers and money laundering. Authorities also blame cryptocurrency miners for wasted energy and deadly coal mining accidents that pose a potential threat to the country’s efforts to reduce carbon emissions.

In September, China’s central bank said all crypto-related transactions were illegal and should be banned, sending a harsh signal of its determination to crack down on the industry.

In October, the United States officially became the largest hub for Bitcoin mining operations and businesses. China’s crackdown has created opportunities for overseas bitcoin mining operations – leading to an infrastructure boom in North America, Russia, Central Asia, and Europe.

El Salvador becomes the first country to accept Bitcoin as legal currency

In September 2021, El Salvador became the first country in the world to accept bitcoin as legal tender, despite widespread domestic skepticism about the cryptocurrency and international warnings about risks to the cryptocurrency. consumers. The government of President Nayib Bukele claims the move will allow more Salvadorans to access banking services for the first time and save about $400 million in remittance fees from abroad each year.

Non-Fungible Tokens (NFT) Go Mainstream

Non-fungible tokens (NFTs), a type of digital asset, have exploded in popularity this year, with NFT artworks selling for millions of dollars. Traded since around 2017, the NFT surged in early 2021, then had another explosive jump around August.

NFT is a digital asset that exists on a blockchain, a record of transactions kept on networked computers. NFTs are typically purchased with cryptocurrency or dollars, and the blockchain keeps a record of the transactions. While the NFT can be viewed by anyone, only the buyer is officially the owner.

According to data from market tracking firm DappRadar, sales grew to $10.7 billion in the third quarter of 2021. On the largest NFT marketplace, OpenSea, there were $2.6 billion in sales in October of this year, up sharply from $4.8 million in October 2020.