While the rest of the world is anxious about the future because of the pandemic, the crypto market is doing well. New blockchain assets have appeared and old ones have broken records. Cryptocurrency at bargain prices for exchange and purchase is available at Alligat0r.com. There was plenty of disturbing news, too, though.Â
Bitcoin “broke” its previous high. Twice in 2021, the main cryptocurrency “jumped” over $60,000. In early November, it hit a historic high of $67,000. And although there was a quick pullback, BTC is now worth $17,000 more than it was at the beginning of the year.
The bad thing is that the other cryptocurrencies were not able to fully “detach” from the value of bitcoin. Although the ETH chart does not repeat BTC’s jumps, it clearly depends on them. Especially in the second half of last year.
NFT trend
Non-negotiable tokens appeared in 2017 based on Ethereum. But they have become popular now. It’s a claim to own “unique rights” to any intellectual property a person buys.
China’s mining ban
In 2019, three out of four bitcoins were mined in China. Now, this is impossible because both mining and cryptocurrency transactions (exchange, trading, etc.) are banned in China. This hit the crypto market hard; bitcoin has almost halved in price. Miners rushed to relocate farms and sell equipment.
Prospects for cryptocurrencies and mining in 2022:
But as a result, bitcoin regained its lost position by November. The effect was short-lived. Moreover, perhaps there are “pluses” to this-at least now most of the miners of the main cryptocurrency are not located in one country in the world. There are rumors that underground mining continues in China.
The first country to recognize bitcoin as its official currency is It was El Salvador, a rather poor Central American republic. The reason for this decision is banal: a quarter of the country’s GDP comes from remittances from the U.S., 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 been living with both bitcoin and the U.S. 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. Cryptocurrencies used to be used only for making money and payments. Now they are spreading into 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.
Government regulation
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 terms for cryptocurrency exchange are available at https://alligat0r.com/coin-pairs/enj/cro/info.Â
Bitcoins and other tokens are often used to pay for illegal services (buying weapons, drugs, etc.). For these people, cryptocurrency is not a means of making money or a new step 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 scam ICOs and pyramid schemes has decreased. But people are still losing money on dubious projects, which doesn’t please regulators. (andeglobal.org) But there is a good chance that cryptocurrencies will not be banned completely.
After all, we would have to make a lot of amendments to the laws on digital assets. Technically, it is difficult to ban cryptocurrencies such as Ethereum or Bitcoin. Too much effort and money would have to be spent.
