By now, almost everyone has heard about bitcoin and cryptocurrency. Cryptocurrency has proved itself to be a worthy evolution of value as it continues to revolutionize the world of finance. Even though it was initially met with skepticism as to whether it is legitimate and stable, people’s trust in cryptos as an alternative store and exchange of value has continued to grow.
Today, we have witnessed the cryptocurrency world grow to a total market value worth nearly $2 trillion. And the recent Codic-19 pandemic further increased the demand for cryptocurrency and hence accelerated the digital transformation. Last year has been a remarkable year for bitcoin and other cryptocurrencies, but this year, investors should expect even more amazing developments in the crypto world. In this post, we will be looking at some important cryptocurrency trends coming to shake the crypto world this year.
Many investors consider bitcoin to be the original cryptocurrency. Of course, it is safe to say it is the mother of all cryptocurrencies because it is the first decentralized, blockchain-based crypto in history. Up till today, it remains by far the most popular and valuable.
The value of bitcoin is determined by how much people are willing to pay for it – and that value has soared exponentially. In the last few months in 2021 alone, the cryptocurrency has experienced more than a 1,000% increase in price to about $50,000, and some analysts still predict the price may go up to $400,000 before the end of this year.
Asides from its decentralization and network effects, bitcoin has several other characteristics that add to its value. It has a finite supply of 21 million BTC, which provides a level of scarcity that is more than what can be experienced with any traditional commodity. Like gold, bitcoin can be used over time. However, unlike gold, it is divisible into 100 million pieces per BTC, with a portability property that makes it efficiently preferable over space and time.
Also, bitcoin enjoys wide acceptability that has led to its increased value, making it a worthy store of value and medium of exchange accepted by thousands of businesses globally.
Bitcoin brought about the birth of other cryptocurrencies, and so it’s considered a strong determining factor in the world of cryptocurrency and blockchain technology. Now, let’s take a look at some crypto trends that will be rocking the industry in 2021.
The year 2020 has proven to be a good year for all crypto markets, and expectations are for 2021 to be even a better year for bitcoin and other cryptos. By virtue of the recent covid-19 outbreak, investors have been looking for new safe-haven assets, bringing cryptocurrencies to the center stage. Because of its decentralized nature and resistance to external factors like government policy, bitcoin has proved itself to be a valuable form of digital gold. As we journey through 2021, bitcoin may further experience more acceptability and hence enjoy increased popularity and new highs. That has already been happening to bitcoin and other cryptos like Ethereum and Dogecoin.
Bitcoin value has been seen touching new highs since the year began. It rose from its $20,000 mark in December 2020 to $40,000 in January 2021, hits $50,000 in February, and now, it is globally valued at around $46,000. Predictions are that the coin will also continue to grow through the year and may eventually hit $400,000 before the end of the year.
Since 2019, DeFi (decentralized finance) has been one of the prominent blockchain trends in the cryptocurrency industry. DeFi is a financial-based decentralized blockchain concept that is completely used for creating crypto tokens, smart contracts, wallets, and exchanges. It consists of all the digital protocols, Peer-to-Peer applications, and more.
DeFi offers open financial services, making DeFi-based platforms the most energetic sector in the blockchain industry. In the coming days of this year, we should expect to see more DeFi-based platforms being created.
From traditional financial institutions like Citi, JPMorgan, and Deutsche Bank to large hedge funds like Renaissance Technologies and family offices – everyone is running into cryptocurrency. Most financial giants have started adopting bitcoin as a mode of payment on their platforms, and many banks are beginning to make their crypto plans public. More of this will likely happen as we go through 2021.
Also known as Dapps, decentralized applications are one of the recent trends in the blockchain industry. Dapp is a blockchain-powered peer-to-peer application built on top of the decentralized network – usually on the Ethereum blockchain. The creation and usage of Dapps have increased in recent times, and the adoption will likely be on the increase this year. There are already pockets of evidence showing that Dapps will hit a great height in the coming months.
This will be one of the greatest cryptocurrency trends to expect this year. Stablecoin is not only loaded with benefits but has also started gaining huge popularity lately. Stablecoin is a digital asset that is completely backed with any fiat currency. The coin combines the advantages of digital currency with the reliability and stability of fiat currency. That means stablecoins are not affected by the volatility of the crypto market and yet have a constant price.
We have already been seen the emergence of some popular stablecoins in the global crypto market. Some of them include Binance USD, Tether, True USD, and many more. This year, we can expect more stablecoins to hit the blockchain market.
Non-fungible tokens (NFTs) are digital assets representing items that exist both in the real and virtual world. They are mostly for people who want to trade items yet without having to go through the onboarding process of a centralized platform before they could trade. They can make the items tradable through protocols of a decentralized exchange. There has been a particularly significant growth of NFTs in the gaming and art industries. But this year, we will likely be seeing more of this play out in some more industries.
In 2009, there was only one cryptocurrency, but about 11 years later, we now have more than 3,000 different cryptocurrencies. That shows that the crypto industry is growing, and new fans are being added to the family all the time. Companies, entrepreneurs, and startups are all trying to get into this crypto trend and are willing to create their own crypto coin that can take the market by storm, like bitcoin.
Finally, as the crypto trends continue to mature towards global acceptance, a more positive outcome is awaiting us in 2021. We are already seeing some of these trends play out, but there are still many more to come before the year runs out. Even though there are still several questions yet to be answered and problems to be solved in the cryptocurrency industry, with the support of crypto companies, regulators, financial institutions, and traders, all these problems and questions can be resolved faster in the coming year.
So is it the right time to invest in bitcoin? Yes, this is just the right time. The crypto has been enjoying new and great highs since the beginning of the year, and predictions show it is likely going to continue for the next few months of the year. So don’t beat yourself for not joining the wagon earlier. You can start investing now.
Use a platform like Anycoin Direct to purchase your BTC easily and securely, then start enjoying all the perks bitcoin and cryptocurrency, in general, have to offer this year.
Try not to invest more than you can afford. However, even a small investment you make in bitcoin today could return manifold in the long run.
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