2021 has already been a milestone year for cryptocurrencies: Bitcoin hit an all-time high price,
Regulatory talks with potential to have big impact on the space, and more institutional buy-in from major companies like micro strategy. All the while, people’s interest in crypto has skyrocketed this year: it’s a hot topic not only among investors but in popular culture too, thanks to everyone from the likes Elon Musk.
But the industry is only in its infancy and constantly evolving. It’s difficult to predict where things are headed long-term, but in the coming months, we’re expecting more of the same. Expect continued conversations about cryptocurrency regulation.
- Expect more talks or decisions around legislation – for example, recent proposed legislation could make it easier for the IRS to find cases of tax evasion when it comes to crypto.
- Possible crypto ETF approval (An ETF is a basket of securities, shares of which are sold on an exchange; they combine features and potential benefits similar to those of stocks) – This is because SEC Chairman Gensler recently hinted that investors may soon have access to a cryptocurrency ETF, which would represent a new and more conventional way to invest in crypto.
- Expect more institutional adoption – Some experts predict bigger, global corporations could jumpstart this adoption even more in the latter half of this year. Amazon has recently sparked rumours that it’s making moves to that end by sharing a job posting for a “digital currency and blockchain product lead.” Walmart is also recruiting a crypto expert to oversee its blockchain strategy. Further institutional adoption could bring about more use-cases for everyday users, and in turn, have an impact on crypto prices.
What trends are happening in the market?
DeFi – Almost nothing has drawn more attention in the crypto community this year than DeFi (Decentralized Finance). The concept basically involves traditional financial transactions that take place on the blockchain. And, unlike traditional payments or transfers, they avoid the need for financial intermediaries’ altogether. And growth in the DeFi space is only just beginning.
NFTs – One of the most interesting developments in the crypto space is the rise of non-fungible tokens (NFTs). These tokens basically represent digital claims to a unique thing or asset. The item they represent can be digital or physical. Fungible tokens – like bitcoin – do not necessarily represent any claim to an asset or physical thing. They can be traded and divided into smaller pieces. NFTs, on the other hand, represent claims to things like domain names, physical or digital artwork, collectibles, and video game add-ons.
Some estimates have placed monthly NFT trading volume at around $40 million and that number is likely to grow. In the art world, NFT adoption is definitely on the rise. In fact, NFT technology is solving ownership and copyright issues that have long plagued the art community.
What coins should you be keeping an eye on?
We like to stick to the top coins by market cap especially the ones within the top 20-30. So we will be keeping an eye on: Bitcoin, Ethereum, XRP, Cardano are just of the cryptocurrencies. Remember, this is not a recommendation, this is just what we will be keeping an eye on and we always recommend conducting your own research before investing any money.
Want to learn more about cryptocurrencies? Download the #1 book ‘Profiting From Cryptocurrencies’ written by our CEO Marcus de Maria.