Growth of Cryptocurrency 2021
13 October 2021
It's no secret that the cryptocurrency markets are booming, with new currencies and their values causing a lot of excitement. Bitcoin has seen a new all-time high price, legislative discussions that might have a large impact on the crypto space, and more institutional buy-in from major organizations. Meanwhile, interest in cryptocurrencies has grown this year, making it a hot topic in 2021, not just among investors but also in popular culture.
Impact of Covid-19
The pandemic fueled the rise and adoption of digital currency even further. The crypto exchange platform saw a considerable increase in trading activities across various key markets across the world, and the market caps of the currencies also increased. With rising digital adoption, the financial technology business is seeing significant investments, providing the world with cutting-edge infrastructure capable of securely handling large numbers of transactions.
Key Factors Fuelling Growth:
Ease of Use:
Virtual or digital currencies such as Bitcoins, Litecoins, Ethereum, and others are becoming more popular in developed countries as individuals discover how simple and flexible the transactional methods are, and how lucrative their long-term value is. Buying and trading bitcoins is less complicated than traditional investment options, which need a lot of paperwork and procedures.
The Trending Culture:
The culture surrounding Bitcoin and other prominent cryptocurrencies is playing an important role in recruiting new investors and retaining existing ones. Many aficionados believe that Bitcoin's popularity stems from the culture and "cool factor" that surrounds it. When you combine all of the exclusive jargon, celebrity-studded conferences, and tight-knit networks, you have the perfect prescription for success with the new generation.
When big corporations and government agencies rally behind a new system and actively use it, it establishes the system's credibility and allays concerns about its long-term viability. Many countries now have provisions for digital currency initiatives thanks to the Central Bank Digital Currency (CBDC).
The Bank of Thailand, the Central Bank of Uruguay, the Central Bank of the Eastern Caribbean, and the People's Bank of China all embrace cryptocurrencies as a means of exchange. Combine that with companies like Facebook, which use cryptocurrencies to grow their business, and you've got all the social evidence you'll ever need.
Social Media Hype:
Influencers and celebrities frequently use social media to discuss bitcoin and other digital currencies, which has a significant impact on market sentiment and growth. Celebrity endorsements are sought for new currency launched as well, in order to generate initial buzz before the currency takes off.
Popular social media platforms like Twitter have vibrant and active crypto communities. Because young, tech-savvy investors are also active users of social media, they are kept up to date on all new developments and are willing to accept the risk as demand continues to grow.
Top 10 cryptocurrencies in October 2021:
- Binance coin
- USD coin
New Record of Bitcoin at a High Price:
For example, Let’s see the price prediction of Bitcoin. In January 2021, Bitcoin was around $32,782 approximately. Bitcoin is hovering around $57,760 in early October, now Bitcoin is hitting $54,723 on 13th October, Bitcoin's price hasn't been this high since May when it fluctuated between $55,000 and $60,000 for many days. Since its last push over $50,000 in early October of 2021, the price has been hovering just around $50,000 for weeks.
Key features that helping in the growth of crypto:
Transactions, including personal and company data, are attached to a random sequence of characters rather than the owner's identity. The popularity of several virtual currencies reveals the size of supply and demand. Contracts involving persons or companies are nearly tough to link.
No Intermediary or Supervisory Bodies.
Because of the lack of government control and rules, fees and restrictions that could be harmful to users are eliminated. Authorities and financial organizations have little control over the flow of bitcoin transactions. This reduces the number of unpleasant costs and restrictions.
Cryptocurrencies can be held in virtual wallets that are protected by a private key. This means that the collected funds are exclusively accessible to the possessor. The owner of a virtual currency should use encryption technologies on their storage devices to boost security.
The flow of cryptocurrency and its prices are not regulated by any government. Virtual currency trade does not take place in a single location. This keeps trading from being disrupted after a hacking attempt. Because transaction data is stored directly by bitcoin holders, it is spread over the network.
Cryptocurrency transmission differs greatly from typical cash transfers. Banking systems, such as incoming and departing sessions in the recipient and sender nations, are fundamental to the institutional model. Virtual money transfers are nearly instantaneous and occur regardless of the user's location.
Commissioned transactions cannot be reversed due to the virtual currency market's absence of institutional oversight. There is no organization that can aid if an error occurs, such as wrong recipient information.
Cryptocurrency owners may put their money to work using a number of tools and services that are constantly growing. It is now possible to convert and exchange cryptocurrencies for dollars or euros. These currencies can be funded straight from a cryptocurrency wallet using conversion and exchange tools.
Crypto rises in 2021 and beyond?
While the rise, proliferation, and adoption of cryptos have long been in the news, numerous previously unforeseen reasons have recently contributed to a tremendous increase. Businesses across all major industries have realized that digital transformation is the way to go, leading to the widespread use of Blockchain to tackle crucial issues. Because of the increased security and transparency that digitizing currency affords, It has been quickly embraced by the FinTech industry. Against this environment, the best cryptocurrencies were rapidly gaining in prominence, and then COVID-19 happened.
While it's difficult to predict which digital currencies, if any, will enjoy significant price increases in 2021, but gradually popular cryptos are increasing in the industry, and we can be certain that cryptocurrencies will not go away anytime soon. Blockchain, the underlying technology that underpins several cryptocurrencies, has gone far beyond the digital currency business, and new applications are expected to emerge this year.