For cryptocurrency investors and enthusiasts, 2021 was a roller coaster ride. While the world was struggling with the second and third waves of the Covid-19 pandemic, cryptocurrencies continued to grow impressively for the first half of the year. The biggest shock came when China imposed a blanket ban on all cryptocurrency transactions. Being one of the most important countries for Bitcoin mining, the ban affected global crypto prices greatly. But Bitcoin was quick to recover and, in November of the same year, reached its new all-time high. Bitcoin mining hash rates grow to their new all-time high at around the same time. While a lot was going on in North America, Asia, and Europe, South America silently made its way to become one of the dominant players in the crypto space. Brazil, in particular, has shown immense potential.
The official currency of Brazil has gone through unforeseen levels of inflation over the past few years. While 2021 began on a bad note for the Brazilian real, many people started investing in Bitcoin as a hedge against inflation. What began as a curse for Brazil turned out to be a blessing. When Bitcoin prices soared at the end of the year, Brazilian crypto investors found themselves in a better financial position than they had ever been. Ceasing on the opportunity, the Central Bank of Brazil also launched a CBDC project for a digital real. As things stand now, Brazil and other South American countries will continue to play an important role in the global cryptocurrency market.
