If you’ve been watching the news lately, you’ve probably heard of cryptocurrency. In fact, if you’ve used MetaTrader 5, you’ll have noticed that you can also trade Ethereum and Bitcoin now.
Needless to say, cryptocurrency is established as an unquestionable financial asset. Coinbase’s main rival in the market, Kraken, is even considering making itself public due to the high influx of cryptocurrency traders and investors who arrived in 2021.
And there are those who believe that the cryptographic bubble will have to burst soon because it cannot scale as it has recently been.
While it is not possible to say exactly what might happen in the future, we can take a look at the latest developments in cryptocurrencies and chart the general market trend.
Bitcoin exceeds $ 20,000
By the end of 2020, we saw Bitcoin steadily rising, and then ended up breaking the $ 20,000 mark to reach $ 20,600.
This was the first time in history that this brand crossed. Prior to that, in 2017 Bitcoin had seen an all-time high, hitting $ 19,783 in December 2017, but in 2018 it dropped to $ 3,400.
So this is the first time it has surpassed $ 20,000 and by 2021 it has gone strong. It is believed that one of the main reasons is that major investors around the world have started talking about it and investing in it.
- Elon Musk confirmed that Tesla has bought Bitcoin worth $ 1.5 billion.
- Paul Tudor Jones showed confidence in Bitcoin’s concentration in late 2020, saying it was still in its “first inning”.
- Stanley Druckenmiller, a billionaire investor, showed interest in the cryptocurrency by saying he owned it.
- S&P Dow Jones Indices showed interest in launching cryptocurrencies in 2021.
Bitcoin emerges as a hedge for inflation
In an interview with CNBC, Tyler Winklevoss of Gemini (famous on Facebook) pointed out how large investors use Bitcoin as a hedge for inflation.
As the world economy faces a pandemic, decentralized cryptocurrency appears as a safe haven. This is why many investors rely on cryptography, which in turn has driven it.
Tesla begins to accept Bitcoin
In addition to announcing Tesla’s investment in Bitcoin, Elon Musk also said Tesla will accept Bitcoin as a payment later this year. Read the following thread:
Although NFTs were there before, they are becoming much more popular in 2021. If you don’t know what they are, here’s a brief description:
NFT is a non-fungible token with the same blockchain technology that is behind cryptocurrency. The blockchain serves as a digital ledger and also as a certification of the uniqueness of a digital asset.
NFTs come in different forms. It could be a piece of digital art, music, video or any type of digital file. One of the most common types of NFT is art, called cryptoart.
In 2021, many conventional artists ventured into the realm of NFTs, and so we saw a much larger influx of collectors joining these spaces. This growing trend is being led by collectors. It is a new way of owning pieces of art and is in line with the traditional art exhibition and collection system, except that here art is digital.
How serious are people about cryptoart?
Cryptoart sold for $ 69 million
Yes, you read that right. Mike Winkelmann, known as Beeple in the digital art world, sold a piece to Christie’s for $ 69.3 million.
In other words, it made history and started something big. Some still think that the immediate future of NFTs is uncertain, however, in the long run NFTs would probably be a big part of the cryptographic world.
It can be concluded that cryptography is undergoing a period of evolution and progression. The next two or three years will be crucial in deciding where to go from here.
The cryptocurrency trade is likely to be more popular and widespread later this year and in the years to come. Brokers and trading platforms have already started offering them pairs of US dollars against Bitcoin and Ethereum and more are expected to continue. Similarly, you may also see trading signals and other tools, such as trading indexes, for cryptographic assets.
Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.