The cryptocurrency market surged in 2021, where the leading financial indexes of the world saw cryptocurrencies being adopted as legal tender, with Bitcoin reaching an all-time high of $68,000.
The year saw some huge cryptocurrency news developments that helped mold new perspectives and paradigms in the domain of cryptocurrency and blockchain technology. The world witnessed the widespread adoption of cryptocurrency by leading countries, along with active attempts being made by other nations to enforce a structured regulatory infrastructure to keep the industry thriving and profitable in the long run.
Keeping in mind the striking growth of the cryptocurrency market in 2021, we have compiled a list of some new crypto trends that are set to dominate the financial markets next year:
- Bitcoin as legal tender
When Satoshi Nakomoto, founder of Bitcoin, invented BTC in 2008, his concept and vision were limited to facilitating a kind of electronic cash that can be sent to people spread across a network. A decade later, his concept has acquired a remarkable momentum, where businesses have acknowledged the true value of his concept and introduced new mechanisms to further solidify the concept and transform it into a booming industry.
2021 saw Bitcoin reaching an all-time high of $68,000 that prompted many leading businesses to adopt cryptocurrency as a valid form of payments, while countries like El Salvador adopted Bitcoin as legal tender. The trend of accepting payments in Bitcoin is one such cryptocurrency news that will continue to dominate the financial sector next year.
- Emphasis on Sustainable Bitcoin Mining
2021 saw Elon Musk, the CEO of Tesla Motor Corps, urging the crypto community to go green and adopt sustainable measures to mine cryptocurrency. According to a Reuters story, Bitcoin mining produces approximately 22 to 22.9 million metric tons of carbon dioxide emissions a year, which is a hazardous development that needs immediate redressal. The cryptocurrency news of Solana (SOL) adopting a greener approach along with financial institutions considering adopting a traditional proof of stake route could continue its trend next year, where we can nations exploring ways to mine crypto without having to worry about its precarious energy consumption.
- Introduction of Central Bank Digital Currencies
Cryptocurrency development also gave birth to a new digital phenomenon called Central bank Digital Currencies (CBDC). A CBDC is a form of virtual cash that can be held by both public and financial institutions.
A recent study conducted by the Bank of International Assessments found that central banks representing a fifth of the world population will soon be inclined towards issuing their CBDCs in the next three years. Moreover, half of the world’s leading nations are actively pursuing the concept of CBDC and may adopt it as legal tender in the coming years.
- Structured Regulatory infrastructure that promotes crypto industry
In 2021 we saw countries like India heavily contemplating introducing a sturdy regulatory structure that may assist regulate crypto transactions in the country. Similarly, the Spanish government last year had drafted a new law that effectively counters crypto fraud and corruption. In 2022, we may hear cryptocurrency news that paves the way for newer blockchain alternatives being adopted globally and countries irrespective of their size, accommodating cryptocurrencies as their country’s legal tender.