(MENAFN – BreezyScroll)
While the rest of the world worries about the future due to the pandemic, the crypto market is doing well. New blockchain assets have appeared and old ones have broken records. Cryptocurrency at favorable prices for exchange and purchase is available at Alligat0r.com. There was also a lot of disturbing news.
Bitcoin has “broken” its previous high. Twice in 2021, the leading cryptocurrency “jumped” over $60,000. In early November, it hit an all-time high of $67,000. And while there was a rapid pullback, BTC is now worth $17,000 more than it was at the start of the year.
The bad thing is that other cryptocurrencies couldn’t completely “detach” themselves from bitcoin’s value. Although the ETH chart does not repeat the jumps of BTC, it clearly depends on them. Especially in the second half of last year.
Non-tradable tokens appeared in 2017 based on Ethereum. But they have become popular now. It is a claim to own “unique rights” to any intellectual property that a person purchases.
Mining ban in China
In 2019, three out of four bitcoins were mined in China. Now, this is impossible because mining and cryptocurrency transactions (exchange, trading, etc.) are prohibited in China. This hit the crypto market hard; bitcoin price almost halved. Miners rushed to move farms and sell equipment.
Outlook for cryptocurrencies and mining in 2022:
But as a result, bitcoin regained its lost position in November. The effect was short-lived. Plus, there may be “upsides” to this – at least now most of the major cryptocurrency miners aren’t located in just one country in the world. There are rumors that underground mining is going on in China.
The first country to recognize bitcoin as an official currency was El Salvador, a rather poor Central American republic. The reason for this decision is mundane: a quarter of the country’s GDP comes from remittances from the United States, on which a commission is imposed. Bitcoin avoids it.
This experiment is interesting because the IMF predicted its failure, calling cryptocurrencies “a highly opaque asset”. Nevertheless, El Salvador has lived on both bitcoin and the US dollar for several months now (it has no currency of its own).
The main trend that will continue in 2022 is blockchain technology entering everyday life. People’s perceptions are starting to change. Previously, cryptocurrencies were only used to earn money and make payments. Now they are spreading in different spheres of life. There are “meme tokens”: Dogecoin, Shiba Inu. On the one hand, it’s a joke and a performance, but on the other hand, it’s a real cryptocurrency asset.
Financial regulators in almost all major countries are against cryptocurrencies. This is normal, their main function is to manage the monetary system. Decentralized finances are difficult to control. Favorable conditions for cryptocurrency exchange are available at .
Bitcoins and other tokens are often used to pay for illegal services (purchase of weapons, drugs, etc.). For these people, cryptocurrency is not a way to make money or a new stage in the development of the financial system. For them, cryptocurrency is a way to avoid criminal liability.
There is a lot of fraud in cryptocurrency and token trading. Yes, the number of fraudulent ICOs and pyramid schemes has decreased. But people are still losing money on dodgy projects, which regulators don’t like. But there is a good chance that cryptocurrencies will not be completely banned.
After all, we would have to make many changes to digital asset laws. Technically, it is difficult to ban cryptocurrencies such as Ethereum or Bitcoin. Too much effort and money would have to be spent.
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