The Biggest Crypto Stories Of The Year
Whilst several years could be considered cryptocurrency breakthroughs, 2021 was the year when people began to seriously pay attention to the market, in all of its volatile and unique glory.
On crypto’s long road to respectability, there have been more than a few bumps in the road, but in no small part to the decentralised nature of blockchain, many of these have been adapted to and only make the sector stronger, and enhanced the appeal of physical crypto coins.
Here are some of the largest crypto stories of the year.
The Tragedy Of Bitcoin Day
A day that was meant to be the coronation of crypto as the currency of the future turned tragic as a result of technical difficulties.
The Latin American country of El Salvador became the first country in the world to adopt Bitcoin as legal tender on 7th September, a day the market was set to celebrate as “Bitcoin day”.
Unfortunately, due to issues reported in the rollout of Bitcoin wallets to the citizens of El Salvador, the digital assets market lost $400bn in value in a single day, although in true crypto fashion, Bitcoin has since bounced back and become stronger than ever.
China Bans Crypto
Whilst there were several warnings from the Chinese government, 24th September brought with it the concerning news that China, at the time the biggest miner of cryptocurrencies in the world, had banned virtual currencies and crypto transactions in the country.
This affected not only miners but every single person in China who owned crypto, as trading was also illegal.
Miners have either gone into hiding or fled to countries such as Kazakhstan, although this in itself would cause problems as miners would see their electricity capped by the Kazakh government.
Scam The Kids
Alternative crypto coins and tokens are often exceptionally volatile, with the success of Dogecoin being balanced with the failures of many other tokens released onto the market.
Whilst many coins are launched by reputable organisations who either have a specific purpose for the token, want to donate to charity or are simply doing it for fun, others have taken advantage of people to facilitate pump and dump schemes.
The most egregious example of this was “Save the Kids Token” (not affiliated with highly reputable UK charity Save the Children), which through the endorsement from very popular influencers made people six-figure sums when the “anti-whale” code meant to stop market manipulation was changed at the last minute.
The investigation and fallout of this were significant, and there is the potential for criminal charges for the influencers who promoted and took advantage of the scheme.
Whilst crypto is a lot of fun to invest in and for many tokens is either respectable or has a very low buy-in, this situation highlights the risks and volatility of altcoins, and the importance of due diligence.