It has been a year of wild fluctuation in the fortunes of Cryptocurrencies, and despite the recent tanking of values of Bitcoin; its price has surged by more than 70% in the past 52 weeks, reports CNBC.
Not only have cryptocurrencies like Bitcoin surged in value, but the entire cryptocurrency market capitalization has surged to $2.5 trillion, which constitutes a doubling in just one year. More importantly, crypto coins are increasingly finding wider acceptance. A midyear survey reveals that the number of crypto coin holders has doubled compared to figures in January.
Bitcoin goes thru a turbulent year
The year 2021 also saw the adoption of Bitcoin as a legal tender by El Salvador. Many nations, including the US, have issued Bitcoin-based ETFs. However, the going has not been smooth for Bitcoin(BTC), and many countries like Turkey, China, Bangladesh have put curbs and banned its trade.
China, which had a booming Bitcoin mining industry with thousands of mining rigs in operation, suddenly made all mining activity and trade in Cryptocurrencies illegal. Though not banning Bitcoin, India and many other nations advocate some form of regulation. Much bad publicity was gained, especially about the energy drain caused by Bitcoin mining and its environmental impacts.
However, the adoption of Bitcoin and other cryptocurrencies is on the rise. Though it is still early to be designated as a legal tender, many financial institutions embrace cryptocurrency because of increasing public demand. In addition, many banks and financial service companies want to use crypto to entice and retain customers.
Expansion in secondary or derivative markets
Canada’s Purpose Investments launched the world’s first bitcoin-based ETFs in February. Today it controls funds worth $1.4 billion. Other entities are waiting to plunge, and there is no reason why the same cannot happen in the US. However, the SEC is still reluctant but could approve a BTC or crypto ETF in 2022.
The field for Crypto leaders has been thrown wide open with the retreat of big tech behemoths like Meta, who once dreamed of steamrolling competition and dominating the crypto market. Google has also announced that it is not pursuing its ambitious plan for a full-blown payment and banking service. As a result, it makes it easier for BTC to realize its quest to reach $100k in 2022.