Almost everyone is talking about cryptocurrency nowadays. It has suddenly become a new topic of interest for a lot of people. Many of my friends have also invested in it.
The meme currency has increased by over 130 times this year.
Bitcoin, Ethereum, Dogecoin…words used primarily by Reddit nerds or economic geeks have swiftly made their path among ordinary folks. Social media is overflowing with the swift rise and decline in crypto costs; exchanges are viewing record volume; still, the authority of all this is below question.
Are you curious to know what is happening in the cryptocurrency world? Let’s dive deeper!
The Starting Phase!
While bitcoin and different crypto assets have forever had their good percentage of fans and folks who have made great money from it, it has seldom been mainstream, such as, say, mutual funds or stocks.
However, it had changed in 2021 when Coinbase, a US-based cryptocurrency exchange, went public and was estimated at $100B. Simultaneously in India, crypto exchanges observed users group to them in record amounts. One crypto official reported that he is viewing up to a million folks in the same era.
CoinSwitch, WazirX, and other exchanges managed high-profile marketing campaigns throughout the IPL (Indian Premier League)- further increasing their growth.
What is the Current Crypto Price Rise?
One bitcoin was worth $9500 in May 2020. There started a meteoric growth, with costs reaching $40000 in January- something several thought insane- till it came to $65000 last month.
The market cap of Bitcoin was at more than a trillion dollars- making it more relevant than Tesla and Facebook.
Bitcoin & Ethereum, the two most significant traded currencies, viewed their rates bounce, but that was not the actual surprise.
Dogecoin, a currency that began as a joke, noticed its value shoot up as names like Elon Musk spoke about it. It was worth $70B- higher than Uber, as of last week.
Who Are All Using these Currencies?
Crypto’s two principal utilizations are as a payment mode, instead of dollars or rupees, and as an investment asset, instead of gold or stocks.
While it has been utilized for payments in a few nations, this has been faced with suspicion and downright denial in India.
Governments don’t wish to replace official money, and the buoyancy of these costs makes them unreliable for payments.
Besides, prices have risen since crypto has turned out to be more consistent in the last year as big worldwide institutions adopted its use and value.
The S&P Dow Jones released a crypto index, auction house Sotheby’s states it would allow bitcoin payments, Tesla users can purchase a car with Bitcoin, and Morgan Stanley delivered its wealth management customers access to bitcoin reserves.
What Happened Then? Why Did Prices Fall?
In April, a power outage in China, which is accountable for over a third of worldwide bitcoin mining, headed to prices falling. Beginning in April, Elon Musk – an unauthorized crypto cheerleader- stated that Tesla would end taking bitcoin payments since bitcoin fueled further burning of fossil fuels- the reverse of Tesla’s renewable energy purpose.
Specialists have stated that, following the record surge, a fall was predicted anyway. Also, they mentioned that no asset’s cost could go on growing forever.
So, What is the Current Status?
Several things are occurring simultaneously. As rates fell in the past few days, it resulted in an extensive selloff. However, millions of Indians yet seem moved by crypto. Exchanges are changing and operating with regulators to gain clarity as early as possible.