Bitcoin in 2021
Cryptocurrencies received massive public attention throughout 2021. Leading cryptocurrencies have hit new highs in 2021.
2021 was a remarkable year for Bitcoin. The cryptocurrency was extremely volatile throughout the year. But it reached all-time high values on two occasions. In the first half of 2021 Bitcoin reached an all-time high of USD $64000. In November 2021 again Bitcoin crossed USD $68000.
The events that impacted Bitcoin in 2021 are – investment by Elon Musk, China’s clampdown of cryptocurrencies and assessment of cryptocurrencies across many countries.
Tesla’s Bitcoin Investment
Tesla CEO Elon Musk announced in early 2021 that the company would invest USD 1.5 billion in Bitcoin. The company also announced that it would accept Bitcoin as payment for its products. The announcements helped Bitcoin’s price level move up. Later Elon Musk suspended acceptance of Bitcoin as a payment mode due to concerns about energy consumption in Bitcoin mining.
The Chinese Ban
China had significant presence in the crypto ecosystem. This is despite the fact that the Chinese government never recognized cryptocurrencies. In 2021 Chinese government banned cryptocurrency mining and trading. As a result mining activities shifted largely to the United States. Many US lawmakers felt that the Chinese ban is an opportunity for America. Though Bitcoin mining dropped initially, it bounced back soon and the US is now the leader in Bitcoin mining.
Bitcoin for payment
Many leading companies are already accepting Bitcoin as payment. The list includes Microsoft, AT&T and KFC Canada. The US-based movie theater chain AMC announced that it would start accepting Bitcoin as payment by the end of 2021. Reports indicate that some small Indian businesses are also accepting Bitcoin as payment. But the Indian government is yet to take a policy decision on cryptocurrency.