Crypto is firmly embedded in our minds. Now people are talking about bitcoin and the opportunity to invest everywhere – on YouTube, on social networks, on TV screens. And sometimes even friends and relatives ask the question “Do you have bitcoin?”. And no wonder – 2021 has become a breakthrough year for cryptocurrencies. And these are not empty words.
In this article, the Telegram channel Amba Crypto will analyze the important events of the outgoing year, we will try to figure out why cryptocurrencies are for a long time (if not forever), what to do here, where to trade. Let’s make a rating of the best centralized exchanges, a rating of decentralized exchanges. Let’s learn how to buy tokens on PancakeSwap. We will answer the question “Which cryptocurrency exchange is better?” (there is an option for everyone)
Important events in 2021 for cryptocurrencies
Initially, let’s go through the most important news of 2021, and also remember a few non-global, but still noisy stories
Acceptance of bitcoin as national currency in El Salvador
In fact, we have two very big news in 2021, which was already enough for the market to grow several times. But the recognition of bitcoin as a national currency is still the main achievement of the crypto community in 2021.
This event had many opponents (not only the IMF and central banks). Even the population of El Salvador opposed the recognition of bitcoin. But here I would like to quote the professor of the Higher School of Economics (Higher School of Economics) – Evgeni Kogan – “It will not get worse, but it is quite possible to get better.”
And although you and I are well aware that after the words “it won’t get worse” there is a “bang” – all the same, this event had a positive impact on both the crypto market and the economy of El Salvador itself.
More specific and accurate conclusions can only be drawn in the medium term – at least in 3-5 years. It is known that in addition to investing in bitcoin, the government of El Salvador also plans to launch bitcoin mining on volcanic energy. How the experiment with cryptocurrencies in El Salvador will end is unclear. But for the crypto market, this is a good push up.
As the president of El Salvador says, “the success of the bitcoin experiment will destroy fiat money.” And in this he is absolutely right. Bitcoin has a number of advantages – both over fiat money and over other cryptocurrencies.
Someone considers it an overvalued asset, a bubble, a pyramid scheme. Some call it the best solution to corruption problems and even the killer of the banking system.
I advise you to read another article in which we analyzed the history of bitcoin, its technical advantages and prospects. I also mentioned which countries might be next to recognize bitcoin as legal tender and why bitcoin is your best investment (even now). Follow the link and read – insert a link to an article about bitcoin here
However, the experiment with Bitcoin and El Salvador can have only two results – either it will be extremely successful, or it will be a complete failure. And in fact, and in another case, we will become witnesses of this. Write about it in the comments – it’s interesting to know the opinion of the VC.ru community.
Bitcoin ETF Acceptance
There is nothing to say here, except for a simple “Wait”
In fact, this is what the crypto community has been dreaming of since 2018, when the entire market went into a flat and protracted crypto winter.
One of the reasons for the crypto winter was then called the launch of bitcoin futures. It is surprising that the whole of 2017, before their launch, the community thought differently and the launch of futures was considered a positive sign.
But futures collapsed the price of bitcoin by 5.5 times in 2018. The community immediately switched and began to hate launching futures without launching an ETF. Like, futures are an additional way to play against the market, and ETF is needed for balance
And so began the multi-year wait for the launch of the ETF. Why was the ETF launch important?
Everything is simple. This is an additional handy tool for institutionalists. In fact, it does not give any advantages to the average user, but opens the way to the crypt for large capital. And not that this road was closed to them. It’s more a question of convenience and familiarity of tools.
By the way, if we talk about the pomposity of the launch, then there was plenty of it. The ticker BITO (this is the first Bitcoin ETF) and its assets rose to $1 billion in just two days. Considered Bitcoin as second gold? Surprisingly, the ticker GLD (that same gold) reached 1 billion in three days. Well, can we now consider bitcoin cooler than gold? At least for Z-generation investors, this is true
With these two news, we can already finish with the most important crypto news for 2021, because they would already be enough to…
Cryptocurrency market grew 3 times
At the beginning of 2021, the crypto market capitalization was about $750 billion. At the time of this writing (December 27, 2021), the capitalization of the crypto market is more than $2.3 trillion. For comparison, this is just a little less than France’s GDP in 2020. According to the World Bank