18.1 C
New York
Saturday, September 25, 2021

Buy now

AN AGITTED YEAR FOR CRYPTOCURRENCIES




2021 is representing a turbulent year for the crypto market. The huge increase in the price of the most popular cryptocurrency, Bitcoin, has focused the attention of a large number of investors in a market that they watched cautiously until not too long ago and now large corporations are venturing into it. universe of cryptocurrencies and billionaire personalities who shake up a market that seems to be behaving like one more risky asset.

The upward race of cryptocurrencies had its greatest momentum in 2020 with an unstoppable Bitcoin, but let’s not forget that since then and until June of this year Ethereum -the cryptocurrency that follows Bitcoin in importance- had increased in value by 750% , surpassing 600% of Bitcoin.

Events during 2021

There are several events that have affected the behavior of cryptocurrencies so far this year.

Among the most noteworthy we cannot fail to mention the position adopted by the People’s Bank of China of not accepting cryptocurrencies or tokens as a means of payment, in addition to prohibiting mining -justifying itself in the environmental impact of the high energy consumption that it entails- when more than 60% of the world’s cryptocurrency mining is carried out in China, causing a massive pilgrimage of miners to other destinations, including Kazakhstan – since its coal mines provide abundant and economic energy in addition to having a more relaxed regulation in terms of the construction of plants for mining- and the United States, which could be another migratory destination for miners since Texas has the cheapest energy in the world, a deregulated electricity grid and a political elite favorable to cryptocurrencies.

Another reason that explains the ups and downs of crypto during the current year is found in the billionaire Elon Musk and his usual comings and goings in tweets whose consequences in the cryptocurrency market have manifested in sudden ups and downs, by admitting Bitcoin as a means of payment in Tesla or reject it weeks later due to the disastrous effect of mining on the environment to retrace its steps after a few weeks leaving Tesla’s door open to cryptocurrency in the not too distant future.

Cryptocurrencies in online trading and as a store of value

As the Plus500 trading platform points out, one of the ways to know which are the most popular cryptocurrencies is to look at which ones are offered by online trading platforms, even if trading cryptocurrency CFDs has nothing to do with the actual purchase. We can see how Bitcoin and Ethereum are the two cryptocurrencies in the top positions, although today there are more than a thousand different types among which we cannot fail to mention Binance Coin, Tether, Cardano, Dogecoin, XRP, USD Coin, Polkadot or Uniswap.




There are investors who buy cryptocurrencies in an Exchange such as Binance, Coinbase or any other they trust because they see in them a store of value capable of safeguarding their assets against inflation and, in fact, in the US it has already exceeded the expectations of experts and is at its highest level since the financial crisis of 2008, a situation that can act as an upward catalyst for Bitcoin. Of course, as mentioned above, this is not the same as doing online cryptocurrency trading where other factors come into play, such as the fact that there is plain speculation with the price of cryptocurrencies, without ever acquiring them, and that the leverage of which The operations are served involves considerable risks that add to the risk of the volatility of cryptocurrencies that many echo.

Future of cryptocurrencies and central bank alternatives

The fame of cryptocurrencies has overcome all barriers and neither banks nor governments seem to be able to contain them, a fact that worries them due to the loss of their traditional control over money and according to some experts as the use of cryptocurrencies becomes widespread and competes with it. Fiat money is most likely to be subjected to intense regulation and legislation, as in fact proposed by the Basel Committee on Banking Supervision by proposing more rigid terms in the operations carried out by entities with cryptocurrencies.

Thus, in its particular war with cryptocurrencies, China is busy implementing its digital yuan – as an alternative to cash – in which it has been working for more than ten years. The value of this currency is linked to the traditional yuan and allows greater control and surveillance of users by the issuing bank as it is well known to all that the Asian giant is uncomfortable with what it cannot control and does not skimp on actions to put it on. hard.

The truth is that we will have to wait to see how the second semester develops and the way in which cryptocurrencies face the challenges that are presented to them. In the meantime, it is convenient to be prepared to face the possibility of any scenario in the case of betting on them.




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
2,959FollowersFollow
0SubscribersSubscribe

Latest Articles