So that you don’t miss any important events in the world of cryptocurrencies this year, we have compiled a list of the most notable events in the world of cryptocurrencies and Bitcoin in 2021. From the growth of non-interchangeable tokens (NFT) and crypto forecasts, to sharp price drops and record highs, which you followed with bated breath on Coinmarketrate.com. The year 2021 was really eventful for many traders and investors.
Let’s get started, shall we?
El Salvador Accepts Bitcoin as Legal Tender
The emergence of thousands of other cryptocurrencies pushed many countries and jurisdictions to create their own virtual money, better known as central bank digital currencies (CBDC), but El Salvador had a different plan.
Instead of developing and implementing its own version of the digital currency, on September 7, 2021, El Salvador adopted Bitcoin as legal tender. This is probably the most world-shaking news on this list. El Salvador not only made a fateful decision for its people, but also hoisted the flag of the country to the top of the creators of history around the world.
According to the President of El Salvador, Nayib Bukele, Bitcoin is a powerful tool that can help many Salvadorans living outside the country to send money home. He believes that BTC can bring financial integration, investment, tourism, innovation and economic development to his country.
Today, there are many changes in the country, and the Government is developing many plans for the development of the financial system of El Salvador. One of them includes a plan to build a “Bitcoin City” funded by BTC-backed bonds.
Following El Salvador’s bold move to adopt Bitcoin as a legal tender, many countries have begun exploring the possibilities of BTC and other digital currencies. However, at the time of writing, El Salvador is still the first and only country to use Bitcoin for all monetary transactions.
China Bans Cryptocurrencies Forever
Let’s talk about one of the largest cryptocurrency markets in the world – China. If you follow the events in the world of cryptocurrencies, you probably know that China seems to have a love-hate relationship with Bitcoin and digital currencies in general, has come to a final end.
If we talk about banning cryptocurrencies, this is not the first time that China has imposed such restrictions. On the other hand, it may be the last one. This year, China decided to pay attention to how much energy Bitcoin mining consumes, and how it can affect the country’s environmental goals. Because of this, there was a significant drop in the BTC market, since almost 50% of all cryptocurrency mining activity was in China.
Shortly after, in September 2021, the People’s Bank of China (PBOC) announced that all transactions related to cryptocurrencies would be considered illegal. At this point, China has effectively permanently banned digital coins such as Bitcoin. According to the PBOC, these activities “seriously threaten the security of the population assets.” The BTC price dropped by more than $2,000 after this statement.
Today (December 2021), Bitcoin mining has reportedly fully recovered after the Chinese crackdown on cryptocurrencies. In fact, the data of Blockchain.com showed that the hashrate of the network increased by about 113% in the five months of this year. This means that the computing power that was reduced due to the prohibition of cryptocurrencies has been fully restored by the network.
NFTs are on the rise
In addition to the Chinese crackdown on cryptocurrencies and Salvador’s love for Bitcoin, non-interchangeable tokens (NFT) have made headlines in the crypto space this year. These are unique, one-of-a-kind and irreplaceable assets. NFTs have special identification codes and metadata that allow them to be uniquely distinguished from other assets. They can be presented as passports that cannot be transferred, and which can be distinguished from others.
This year, NFTs appeared in various industries, and many enthusiasts tried their hand – even the most famous artists, celebrities, companies and other figures around the world. Non-interchangeable tokens are so popular that now you can find NFT games, works of art, music and much more on the Internet. Examples include NBA Top Shots, F1 Delta Time, Sorare and NFL Dapper Labs. Believe it or not, most NFTs are even sold at very high prices. Unsurprisingly, NFT became the Collins Dictionary word of the Year in 2021.
Cryptocurrencies and Blockchain are Transforming the Gaming Industry
Axie Infinity, MOBOX, PRIDE Fight and Crypto Kitties are just some of the many blockchain games that have appeared in the world of cryptocurrencies. After the outbreak of the pandemic, many people began to look for other ways to earn money without leaving home. Fortunately for others, they found what they were looking for in blockchain games.
If you are both a gamer and a lover of cryptocurrencies, blockchain games will allow you to enjoy the best of both worlds. This type of games will allow you to earn cryptocurrency just by playing. The best thing about this is that the shares of cryptocurrency that you earn by fighting in the game can be cashed out and spent in the real world.
For example, shards of Axie Infinity Shards (AXS) and love potions Smooth Love Potions (SLPs) from the Axie Infinity game can be easily exchanged using any of almost 400 payment methods.
Bitcoin Falls and Reaches New ATH
This year started with BTC being sold at a price of over $29,000. In January, BTC reached a price of almost $41,000. This was followed by another historic high in February, when Bitcoin soared to over $57,000 per coin. In March, its value rose again to $ 61,000, and in April another historical maximum followed – more than $ 63,000 per coin.
There have also been some downturns this year, especially in the second quarter when the value of BTC dropped to almost $30,000. In September, there was growth again when BTC reached over $52,000. On the other hand, there were downturns between them, when Bitcoin fell to 41,000 in the same month.
Despite all this craziness, in November Bitcoin reached its new ATH – more than $68,000 per coin. But at the time of writing, BTC is being sold at a price of about $49,000 per coin. There were price fluctuations in the market, which made the forecasts of cryptocurrencies even more difficult than before. Undoubtedly, many factors contributed to the rise and fall of prices during the year, some of them included the events we discussed earlier.
Bitcoin ETF has Opened the Crypto Space
What else awaits Bitcoin in 2021? Let’s talk about an exchange-traded fund (ETF). This type of fund allows you to hold several types of assets. ETFs track the market performance of an asset or set of assets that can be traded on various exchanges.
In the cryptocurrency space, Bitcoin ETFs reflect the value of BTC, but here’s the thing: you can’t really own BTC shares. Simply put, Bitcoin ETFs allow you to invest in BTC and use the financial opportunities it offers without having BTC on hand.
This reality has interested many traders and investors who are just starting to try their hand at Bitcoin and other digital currencies. BTC ETFs began to appear in the world of cryptocurrencies because there was no need to understand every detail about Bitcoin and how it works. Institutional investors don’t care about technology. They care about profit.
What awaits cryptocurrency in 2022
The year 2021 has undoubtedly become an eerily entertaining and exciting journey for many representatives of the cryptocurrency world. There were ups and downs, and victories, and failures. We’re almost done with the Bitcoin-related events of 2021, and we can’t wait to see what 2022 will bring.
Will Bitcoin reach a huge price – more than $80,000 per coin? Will there be new technologies that can raise the cryptocurrency and blockchain industry to a new height?
No one knows yet what 2022 will bring, but one thing is for sure – the Cue ball and other digital currencies can still offer many new financial opportunities.