6 Important Things To Look At As Bitcoin Makes In 2021

All of 2021 is expected to be the best year since the birth of Bitcoin. In recent years, the Fed has continued to tighten monetary policy, which has created serious financial problems for the United States. There has not been a greater impact on reason and politics, accuracy and publicity than in 2021, when the importance of Bitcoin increases.

2021 is also the most important year since the birth of Bitcoin. After a year of competition, Bitcoin bull runners this year became the “HODL” family of cryptocurrencies, regardless of value. This reinforced the belief in holding cryptocurrencies for a long time. Earlier this year, Bitcoin's value fell from $ 29,000 to $ 64,000, then fell back to $ 29,000, then returned to an all-time high of $ 69,000 and so on lost to $ 48,000. US money at the time of writing. Greed and fear have caused many people to lose some or all of their chips. Twelve months ago, Bitcoin typically faced six major events:

1. Rapid development of the Bitcoin Lightning network

Bitcoin prices have risen 70% since the start of the year, but it's not the only increase. With the strong development and continuous innovation of the Bitcoin Lightning network, Bitcoin has matured more and more than the average exchange rate.

Currently, the number of nodes and channels has more than doubled, the number of nodes has increased from around 15,000 to 31,000, and the number of channels from around 36,000 to 82,000. Better yet, the data provided by Bitcoin Visuals show that the Bitcoin Lightning Network's total capacity has grown from less than 1,000 BTC to almost 3,300 BTC. Measured in US dollars, the Lightning Network is more than five times more liquid than it was a year ago.

Thanks to the Lightning Network, Bitcoin has become more popular as a payment and exchange platform. Citadel21, for example, currently operates most of its operations through the Lightning Network.

It should be noted that streaming over the Lightning Network has become a proven technology that can be fully operational by 2021. Large Lightning Network applications such as Breez and Sphinx have now passed Stay tuned while listening. podcasts, paving the way for new ways of monetization. Plus, the Lightning Network makes it easy to self-identify online.

2. The body begins to climb

MicroStrategy (MicroStrategy) is a technology company that holds the leading role in Bitcoin ownership of all trading companies. Company CEO Michael Saylor tripled his Bitcoin holdings in 2021 and hit an incredible level. 122,000 bitcoins. Tesla still had 43,000 bitcoins purchased at the start of the year, but after CEO Musk invested heavily in shitcoins and pointed out environmental issues related to mining, Bitcoin FUD (Fear, Unknown) clear) and the meaning of Suspicion). ), most Bitcoin enthusiasts neither believe it nor follow it.

Norwegian market and energy giant Aker bought more than 1,000 bitcoins from the new company Seetee (dedicated to investing in operations and businesses in the bitcoin ecosystem), turning out to hold bitcoins between them .

3. Financial markets have always been patient with Bitcoin, but Bitcoin doesn't seem passionate

In June 2021, Coinbase decided to list directly with the Nasdaq with a market cap of $ 85 billion. In October, the ProShares Bitcoin ETF, the first Bitcoin exchange (ETF) in the United States, also started trading well this year.

Many financial market physicians have always viewed these incidents as major developments, but none significant or positive for Bitcoin. Of course, that's not a bad thing, but Bitcoin doesn't seem to consider the need to cope with traditional financial markets.

4. Tafruit

In June 2021, the Bitcoin network decided to complete a TAPROOT update this year.

On November 14, the Bitcoin network block height reached 709,632 and the taproot change was completed. The updated Bitcoin network introduces the concept of Schnorr signing, the MAST (Merkel Tree) data structure, and the new Tapscript scripting language. As explained in the Taproot Github data update, our combination will expand the Bitcoin smart contract exchange. At the same time, it offers greater privacy by allowing users to hide smart contracts with the normal Bitcoin market. for

While Taproot is considered the most sought-after platform in the Bitcoin industry, the Bitcoin (BTC) modification does not appear to compare to the London modification which brings deflationary functionality to Ethereum. . Lots of waves in the market. for

5. Bitcoin's computing power has migrated.

In May, at the 51st meeting of the State Finance and Development Council, it was to seek consensus on consensus, strengthen research, identification and early warning of financial risks, and promote SME reform. Businesses, reducing lending risk and strengthening their oversight of financial services companies, disrupting bitcoin mining and trading, and taking decisive action. The Xinhua News Agency later published an article saying, “Electricity-powered mines cannot squeeze valuable products. The Bitcoin mining pool relied on the entire network and its strength also fell to 87 EH / s.

However, according to the official website of the National Development and Reform Commission in October, according to a report published on the British Financial Times website on October 13, new data has been revealed that cryptocurrency mining operations were delayed for two months after being banned. through China, the United States overtook China to become the birthplace of the world's largest bitcoin mining game. Between May and July of this year, China's share of global energy consumption (such as the energy demand for Bitcoin's mining activity) fell from 44% to zero, according to data released by Cambridge. Alternative Finance Research Center. I lost. In 2019, China's share of world Chinese power is quarterly. According to the report, the United States' share of global energy consumption fell from 17% in April to 35% in August. At the same time, Kazakhstan's turnover increased by 10% of the points to 18%.

6. Bitcoin becomes fiat money.

For Bitcoin and the crypto industry in general, El Salvador's assessment of Bitcoin as a fiat country is arguably the most important in 2021 and one of the most important in Bitcoin's history.

On September 7, 2021, the Salvadoran legislature authorized the use of "Bitcoin and the US dollar to be used simultaneously in accordance with the legal values ​​of El Salvador".

In addition to trading Bitcoin for fiat, El Salvador is also keeping Bitcoin, adding at least 700 BTC so far. Many "interested" presidents of El Salvador, Nayib Bukele, have announced that the region is developing in the early stages of a volcanic-powered bitcoin mining project. The video posted by Bukele first shows the electrical system in the area looking like a bird's eye view, then cut into a truck shape finally showing the machine in operation. The government of this tropical plan aims to use the massive energy generated by fire to mine Bitcoin.

concludes

A little ballooning on the way, but Bitcoin has proven itself again in 2021. While it hasn't gone over $ 100,000 like many "fortune teller" stores, it's still stable in the world. panic at $ 50,000. 2022 is approaching. What are the key events that will affect the crypto industry in the years to come, and what news will affect you? Let's wait.