Digital currency is becoming the norm in transactions around the world, displacing paper bills and coins. Crypto are gaining momentum and Gen Z is about to jump into the digital asset environment. Analysts point out that there is nothing to be afraid of. The cryptocurrency market in 2021 is very different from the 2017 market.
On April 14, Bitcoin broke a historical record, its value reached $ 64 thousand. However, as is often the case with Bitcoin, the rally quickly gave way to a sharp sell-off. So, May has become the most unfavorable month for Bitcoin since November 2018. During May 2021, the price of the crypto fell by a third compared to April. But even with the fall, there are buyers. Thus, analysts believe that the upward trend of the past few months will remain unchanged.
Some experts predict an increase in the value of Bitcoin in 2021 to $ 120 thousand. Of course, not a single expert in the world obliged to limit themselves to their fantasies, but many analysts agree that Bitcoin may become one of the best cryptocurrencies for investment in 2021.
They also note that Ethereum could become a serious opponent of Bitcoin for investment leadership in 2021.
The popularity of cryptocurrency is increasing every day
If more than 10 years ago Bitcoin was only a concept of a means of payment, now it has become an official method of payment for many companies.
Bitcoin has become so popular that it is even traded in the crypto market. Which has become a kind of addition to the traditional stock market.
Recall a recent study by Harris Poll and Mastercard Global Foresights, Insights and Analytics.
The report took into account the opinion of 15,569 consumers from 18 countries in 4 regions of the world. The aim of the study is to analyze consumer appetite for digital payments.
According to this report, 40% of those surveyed indicated that they plan to use crypto as a means of payment in 2021. It should also be emphasized that the general public is especially involved in conversations about cryptocurrencies: 67% of survey participants agree that they are more open to using cryptocurrency than a year earlier, 77% showed great interest in learning more about digital assets, and 75% confirmed that they would use cryptocurrency as a means of payment if they had a better understanding of the market. Moreover, the results indicate that 93% of those surveyed expressed a desire to follow the new payment trends.
As you can see, consumer appetite for digital currencies is growing. This has a tremendous impact on the global economy as a whole and on the financial policies of countries.
The nature of cryptocurrencies, including the first of them – Bitcoin, is such that they can be both a store of value (that is, an investment asset) and a means of settlement, like ordinary money.
Since cryptocurrencies are a virtual asset, their financial properties can be programmed. Under certain conditions, market can determine the price of a cryptocurrency, as in the case of Bitcoin, or it can without changes. The latter type of cryptocurrency called stablecoins. The most popular of these are coins pegged to national currencies.
Stablecoins are extremely convenient to use for transfers or as protection against the volatility of other cryptocurrencies. And this characteristic is becoming more and more popular. The most popular stablecoin remains Tether, which is pegged to the dollar.
Also, due to the fact that the central banks of countries cannot control decentralized cryptocurrencies, they decided to start issuing CBDCs, which carried out on the basis of government authority.
According to the Bank for International Settlements (BIS), 86% of central banks worldwide are actively exploring the potential of CBDCs right now.
Thus, we can conclude that the cryptocurrency industry has turned from a niche into a multi-billion dollar industry.