Cryptocurrency Rollercoaster 2021: Ten Defining Crypto Moments Of The Year

The year of 2021 will be remembered as the year when cryptocurrency really took off - finding a voice in the mainstream and challenging everyone's notion of currency as the world prepares for Web 3.0. The foundations for complete migration to the the digital realm were laid this year - with all-things-metaverse finally starting to materialise.

At the same time, non-fungible tokens (NFTs) and blockchain-backed cryptocurrency markets took off, plummeted back down again, while another new meme-based token took its top spot. Crypto mining picked up all over the world, and countries are now taking the scope of crypto currencies like bitcoin more seriously.

Here's a list of all-things-cryptocurrency and blockchain that paved the way for mass acceptance of tech in 2021.

shutterstock

1. Storing Covid-19 medical data on blockchain

To gather and store data of Covid-19 cases and tests in real time, Indian government used blockchain technology, Bloomberg reported.

Blockchain technology is used to record and enable all cryptocurrency transactions. A decentralised way to pay and store data, blockchains allow encrypted ledgers of sorts that provide immediate verification of payments/data without the need for other players like banks and government authorities.

Also read: Crazy For Crypto? 20 Terms You Must Know Before Investing In Cryptocurrency

Unsplash

2. El Salvador becomes first country to accept bitcoin as legal tender

In September 2021, El Salvador became the first country in the world to accept bitcoin as legal tender. Using the "Chivo" digital wallet, people of El Salvador may conduct transactions in bitcoin or in US dollars.

To bolster its bitcoin efforts, El Salvador has set aside $203 million to give more people access to banking services and to make digital payments mainstream.

Also read: India Will Carve Own Crypto Path Instead Of Following US Or El Salvador, Says Jayant Sinha

3. Metaverse opens scope of more NFTs

Driven by the need to make current tech more immersive and futuristic, the tech makers of tomorrow are trying to blur the lines between what's physical and what's digital. In other words - the metaverse(s). Each metaverse represents a digital world akin to an open-world game - only created to mimic social settings and to enable more than gaming through professional collaborative tools and more.

Also read: Another Virtual Record: Virtual Plot Worth $4.3 Million Sold On Metaverse

By throwing open the gates of various metaverses, companies are effectively urging people to invest their money on digital land in a particular universe - to be sold as NFTs.

Reuters

4. NFTs go mainstream

The creations of artist Beeple kick-started the interest in NFTs around the globe, compelling the wealthy to invest heavily in digital goods and now, real estate.

"Everydays: The First 5000 Days" by Beeple remains the most expensive NFT ever - with sale price of $69.3 million (converted from Ether).

According to Investopedia, the average price of an NFT has jumped from $24.98 on January 1, 2020 to $913.48 on November 30, 2021.

Also read: Non-Fungible Tokens: How 'Punk' Crypto Trend Gave Rise To NFTs For Digital Art

5. India's crypto ban rumour disrupts crypto

When an old version of India's upcoming cryptocurrency bill leaked, crypto counters all over the country plunged sharply. This stemmed from what everyone assumed would be the end of cryptocurrency in the country.

Also read: Govt Regulation Is Good: Five Crypto Startups React To India's Crypto Bill Noise

Turns out, that was the earliest draft of the bill and it appears India is likely to allow some extent of cryptocurrency trading, ditching the Chinese route of a blanket ban.

In addition, the Reserve Bank of India is working on a digital currency of its own to compete with cryptocurrencies.

Reuters

6. Bitcoin finally gets Taproot

With the release of Taproot for bitcoin transactions, the cryptocurrency became safer, cheaper, more secure and efficient.

By introducing smart contracts, Taproot forces buyers and sellers to be more responsible yet also more anonymous. Instead of complicated pools of payments, a series of payments within one will now be stored as one.

Also read: Bitcoin Is Getting Much-Needed 'Taproot' Upgrade This Weekend: What Will Change?

With smart contracts, transactions are more personalised on bitcoin than ever before. In addition, the size of each bitcoin transaction is a lot smaller than before.

7. Crypto mining triggers reactions

Cryptocurrency mining is an energy-intensive and noisy process. In fact, after China ban, the weight of most crypto mining has shifted to other countries in Europe and North America.

Sweden is so overburdened for energy that it is asking the European Union to ban crypto mining across the bloc. In addition, Swedish authorities have warned that crypto mining could prevent the countries from meeting their climate change goals.

Also read: Sweden Wants Crypto Mining Banned Across Europe To Meet Climate Change Goals

unsplash

8. China's ban is US' profit

In September 2019, China accounted for 75.5 per cent of all cryptocurrency mining owing to cheap electricity and weak regulations. After enforcing a blanket ban on all cryptocurrencies, China is staring at a $9 billion yearly loss in cryptomining revenue, according to Visual Capitalist.

This meant a win for the US! It has emerged as the number 1 place of choice for cryptominers, accounting for 35.4 per cent of all cryptocurrency mining activities.

It is now illegal to conduct any cryptocurrency-related activity in China. Th country claims it wants to reduce the carbon footprint by banning bitcoin. But the fact is that cryptocurrencies are decentralised and mostly out of government's reach, and no government likes that.

Unsplash

9. 90% bitcoin mined

Did you know that 90 per cent of all bitcoin have been mined? To mine the remaining 10 per cent, the world could take 119 years. About 18.98 million bitcoins (around 90 percent) of a maximum of 21 million are now openly being traded in the market, according to Blockchain.com.

Also read: 90% Of All Bitcoins Have Been Mined, Remaining 10% Could Take 119 Years

In 12 years, cryptocurrency has truly taken some giants leaps.

10. Bitcoin rallies, then falls

Bitcoin has had quite the year. After jumping to record $69,000 in November, the world's most preferred cryptocurrency jumped to under $50,000 in December.

Bitcoin started recording a spike in April, which culminated in its strong valuation in November. At the beginning of the year, bitcoin was just under $30,000. After Tesla announced a purchase of $1.5 billion bitcoins while adding that it would accept bitcoin payments, its priced soared immediately.

Did you enjoy reading this round-up of all-things-crypto over the last year? Share your thought with us below if you think we missed anything. For more in the world of technology and science, keep reading Indiatimes.com.

Citation

CNBCTV18.com. (2021, December 20). From $30k to $69k and back under $50k: Tracing Bitcoin¡¯s rollercoaster ride this year.

Top 5 Non-Fungible Tokens (NFTs) of 2021. (2021, December 15). Investopedia.

Content, S. (2021, December 7). After China¡¯s Crypto Ban, Who Leads in Bitcoin Mining? Visual Capitalist.

Bloomberg. (2021) Wall Street Finally Learns It Can't Ignore Crypto and NFTs