From Elon Musk investing in Dogecoin to a range of new and exciting cryptocurrencies drastically picking up pace, the cryptocurrency market has certainly reached new heights in recent times. When assessing the overall cryptocurrency landscape, it is no longer simmering on the edges of the financial system, instead being accepted widely and losing its tag of being nothing more than a fad. As such, 2021 was certainly a positive year for cryptocurrency.
With cryptocurrency illustrating dramatic growth and a variety of digital currencies, such as Bitcoin, Litecoin, and Ethereum, gathering real momentum, this new and relatively safe financial system is flourishing. From purchasing cars and luxury watches to accessing content from leading media outlets and gaming at a Crypto Casino, cryptocurrency is finding its way into the mainstream on a more consistent basis. It regularly hogs the headlines, many companies are endorsing cryptocurrency, and retailers are starting to accept it in their stores. What was once regarded as a volatile asset is now being adopted by some of the world’s most traditional marketplaces. But why? What are the main factors behind cryptocurrency’s recent growth? Why has 2021 been a turning point for all things crypto? Let’s take a look at a few reasons below.
Bitcoin has grown to a new level
Even if your knowledge surrounding cryptocurrency is fairly limited, you have probably heard of Bitcoin and the general fuss surrounding it. In fact, the world’s first decentralised cryptocurrency hit an all-time high of $68,000 recently, another defining moment in its relatively short history. Ethereum, the next most popular crypto, has seen a recent surge as well, as value in a variety of cryptos continues to rise. In terms of Bitcoin, another main ingredient behind its recent notable success has been credited with its introduction on the New York Stock Exchange.
Coinbase going public
Alongside growth in public awareness and the aforementioned rise in ways you can spend cryptocurrency in the modern world, another factor behind 2021 being such a fruitful year for all things crypto has been associated with Coinbase going public, with the company aiming to capitalise on the boom surrounding the likes of bitcoin, ethereum and other digital currencies. With shares in Coinbase now available for purchase, it has witnessed huge growth. For example, shares in the company began trading at $381 a share whereas, at the time of writing, stock has quickly surged to a high of nearly $430, with Coinbase now being worth a staggering $86 billion.
Why are people still skeptical about cryptocurrency?
Given the fact that it poses a threat to traditional finance and its methods, some people will always be skeptical about cryptocurrency and its prospects. As we’ve witnessed in 2021, though, time will eventually heal many peoples’ skepticism and enable cryptocurrency to gather further momentum. The good news for cryptocurrency investors is that governments and large corporations are beginning to take cryptocurrency seriously. It’s surely only a matter of time before others follow suit.