Why Is Cryptocurrency So Popular in 2021?

Bitcoin prices surged high during 2020, and it reclaimed the high values that it had reached in 2017. That is because it found support from Wall Street investors, who are some of the biggest investors in the world. Hence, Bitcoin, as well as other cryptocurrencies, can look forward to a slew of fresh developments in the year 2021. Indeed, there are certain developments planned for it, such as Bitcoin inspired cryptocurrency launch by Facebook or regulations that the US will launch for the cryptocurrency market. Hence, the digital asset may soon see expanded legal usage across the world.

The world of online gambling has been the early adopters of this currency. Many websites have provision for players to make payments using cryptocurrencies. Indeed, many casinos even have special bonus schemes for members who register using cryptocurrencies. Hence, if you own Bitcoins or other such assets, you could get free spins on Da Vinci Diamonds slot machine free or other casino games.

What the Experts Say

Over the past decade and more, Bitcoin, as well as other cryptocurrencies, have risen in value, from nothing to about $560 billion in their market capitalisation. This is as per the investment strategy experts such as the Wells Fargo asset management team. Many felt that it was a fad, while others thought that it would last. Today, in 2021, people are exploring digital space for this asset more and discussing its upsides as well as downsides.

Many point out that Bitcoin had a net gain of 170% in 2020, which is on top of the 90% gain that the cryptocurrency saw in the year 2019. Indeed, many say that investing in cryptocurrency is more about speculating, similar to the days of the gold rush that people saw in the 1850s. Not only has speculative interest gotten the prices up from traditional investors, but the popular payment giants such as Square and PayPal have also introduced payments via crypto. This is definitely going to have a positive impact in 2021.

Trading Mix with Crypto

It is expected that traditional markets, as well as crypto markets, will see continuity and improvements. Perfect examples are PayPal and Square’s offering for payments via such currencies. Hence, these platforms will help transactions in cryptocurrencies to expand rapidly. Hopefully, the adoption curve in trading will be high. Then trading mix overall will be bullish, which will make a favourable case for major crypto-based assets.

Price Movements of Cryptocurrencies

Bitcoin did become volatile when the pandemic hit. It fell to low values such as $4000 before it rebounded sharply. Ethereum, on the other hand, is the second-largest cryptocurrency now, valued after Bitcoin. Its value rose by over 300% in the last year. This created interest in decentralised finance schemes where crypto technology can be used to create traditional instruments of finance such as insurance and loans.

From the perspective of the trading focus of the year was on structured and high yield products. Also, the market saw a wave of options and futures products come in, and it is likely that this segment will expand more. Indeed, many of the crypto assets that were on edge are now main-stream which is another significant development.

Hence, over time, Ethereum and Bitcoin have proven resilient. Hence, retail, as well as institutional investors, have also raised their interest in these digital currencies over the last few months. Many made gains when they invested early in the craze about cryptocurrencies that had begun a few years back. However, there is much that does hold back digital coins from being used in mainstream transactions.

Investing Scene Remains Optimistic

No matter what policies come into play and how well accepted are the cryptocurrencies, they have definitely given great returns as a new category of asset class for trading. Once Bitcoin reached $20,000 in the early part of 2018, it did fall to low levels as $3000, at a time when all crypto markets took a fall. However, from 2019 to 2020 have been years of recovery for these assets. Bitcoin has strengthened its value to $15000 and above while several positive developments have increased interest among institutional investors, allowing trading values of the coins to be stable.

Stable coins are what the industry is hoping to see and strengthen in 2021. These are digital tokens pegged to fiat currencies that hedge against the potential decline of prices of the underlying cryptocurrencies. It is expected that stable coins will grow over the next year since they are tethered to real currencies. It is estimated that prices will rise these digital currencies in the year 2021. At the same time, regulators and governments will find ways to facilitate and control digital tokens.