Cryptocurrency Market Inventory for 2021: Bitcoin Still Important and NFTs Considered

According to reports, the value of Bitcoin can reach $ 70,000 and the assets of the "Mimecoin" variety amount to billions of dollars. I have researched this industry. The year 2021, which has just ended, is the most eventful year in the history of cryptocurrency development (despite rapid changes in market models).

At the start of 2021, crypto assets were frantic and investors of all sizes were pouring into the market with cash. Since then, many cryptocurrencies, including Bitcoin, have rarely gone missing, and the content of various cryptocurrencies has become more and more into the modern conversation of traders.

Here are some of the changes in the cryptocurrency industry in 2021.

1. Bitcoin: still the leader

Bitcoin is the oldest cryptocurrency and still has two “crowns”. It is also the world's largest and best-known cryptocurrency in terms of assets. But at the same time, many cryptocurrencies seem to want to question Bitcoin's strong position.

From January 1 to mid-April, the value of Bitcoin increased by 120%. Many drivers after the rise of Bitcoin, including large cash purchases from trading companies and large corporations, including Musk's Tesla, Mastercard and Vietnam, are starting to embrace Bitcoin. Bank of Wall Street.

Another reason traders are crazy about Bitcoin is the cryptocurrency's ability to dampen inflation. In the United States, all Bitcoin exchanges are restricted (unlike those printed in US currency), although significant government support has resulted in higher prices and inflation.

U.S. interest rates are currently at an all-time low, Bitcoin investments can be exported quickly, and the rapid improvement in Bitcoin infrastructure will make trading easier and allow Bitcoin to attract more traders.

A sign of the significant acceptance of Bitcoin in the US community, in April, the famous US cryptocurrency exchange Coinbase successfully listed on the US stock market in April with a market value of up to $ 86 billion. It will be the largest public domain name in the cryptocurrency industry.

Richard Galvin, president of "Digital Capital Wealth Management Company", an American cryptocurrency management company, said that today bitcoin has graduated and entered a big market and turned into investors of all kinds. They are all looking for ways to get rich. in bitcoins.

However, Bitcoin did not trade the "essentials" of the counterfeit. In May, Bitcoin prices fell 35%, and against the impact of rising prices in Europe and the United States, Bitcoin prices in November set a new high of $ 69,000.

Of course, there are those who are skeptical of Bitcoin, for example Jamie Dimon, chairman of JPMorgan Chase Bank, described Bitcoin as "unprofitable".

2. Stand on the Meme coin

For newbies entering the cryptocurrency market, Bitcoin is still the first choice. At the same time, a slew of new cryptocurrencies have appeared on the market, some of which have been criticized as jokes.

The benefits of this new cryptocurrency are called meme coins, and there are Dogecoin, Shiba Inu coins, squid coins, etc. Some parts even came from Internet fashions, but were seldom used.

Dogecoin was born in 2013 as a subsidiary of Bitcoin. In May, the price of Dogecoin rose to 12,000%, setting new all-time highs, but by mid-December the price had fallen by 80%. Another coin, Shiba Inu Coin, has already entered the world's top 10 cryptocurrency rankings.

Apparently, the very wave of coins in the United States is tied to the “Wall Street gambling movement” of private equity. Before that, many American businessmen focused on online forums, engaged in battles with Wall Street short sellers, and bought stocks like Game Post, which became a hot topic for some time. .

Affected by this new disease, many African businessmen are now trading in local products. Later, regulators issued warnings regarding changes in some commodities and some traders started to think about cryptocurrencies.

Joseph Edwards, research director at US cryptocurrency brokerage firm Enigma Securities, said the wave of investment has occurred in the cryptocurrency market.

Edwards said cryptocurrencies like Dogecoin and Shiba Inu coins are all speculation, but the money invested in these currencies has the idea of ​​"why can't I make money with cash or deposits in my hands? "

3. Leader: hide concerns that companies refuse to talk about

As more and more money flows into the cryptocurrency market, regulators in many countries are starting to fear that the gains will boost finances and threaten the stability of the global financial market. .

In fact, cryptocurrency is a new technology that can disrupt the traditional financial system. Some cryptocurrency experts have called for tighter market regulation and warned traders to watch out for large price movements.

In the face of future policy making, the cryptocurrency market thrives in chaos and may face revisions at any time in the future.

In May, when Chinese regulators reformed cryptocurrencies, the price of bitcoin halved and the entire cryptocurrency market engaged.

Stephen Kelso, Global Investment Manager of ITI Capital, said that managing risk in the cryptocurrency industry is a widespread and knowledgeable business enterprise involved on a daily basis. Regulators are advancing and seizing the cryptocurrency market.

4, NAME

As many meme coins were coming onto the scene, other cryptocurrency products, NFT (Non-Homogeneous Token) caught my attention.

NFT is actually digital storage stored on the blockchain's "digital ledger", representing members of certain functions in Twitter art, video, and advertising. In 2021, the NFT industry will explode.

In March, digital works by American artist Beeple sold for $ 70 million (around 700 billion won) at the Christie's store.

This competition has stimulated people's interest in NFTs.

In the third quarter of this year, the global NFT market volume reached $ 10.7 billion, eight times that of the second quarter. In August, as the volume of NFT trades increased, the price of some NFT units rose and some short-term traders were selling quick and stable gains during the day or even hourly.

Some speculate that the growing cryptocurrency market has spread to a diverse group of wealthy people and that NFTs will become the leader of the online virtual world in the future, both leading the wave of NFT activity. .

John Egan, CEO of BNP Paribas' Latelier research firm, said, "The rise of cryptocurrencies and the NFT market is also contributing to the decline of class relations," said John Egan. Now, with the rising cost of housing and other assets, young people have less desire to live, and in hopes of getting rich quick, they are turning to cryptocurrencies and NFTs.

From Coca-Cola to luxury brand Burberry, some of the most famous brands have started producing NFTs. However, the regulation of the NFT market is not good, so some large venture capitalists will not be exited on time.

Ergen said he believes that over the next three years, licensed financial institutions will be more likely to invest in NFT firms and not venture capital firms.