Bitcoin is the oldest as well as the largest cryptocurrency in the market. It is a popular cryptocurrency because of its market capitalization and popularity. It has been in the news headlines for a very long period now, and 2021 has been a perfect year for this digital currency. The bitcoin news is needed to analyse its future and the massive power requirements for cryptocurrency mining operations. Bitcoin has been subjected to a high degree of volatility in prices, leading to the massive popularity of this digital token. However, even if the market was highly uncertain, people were crazy about this cryptocurrency. They purchased vast bitcoin, making it the most popular cryptocurrency in 2021.
In 2021, bitcoin reached its highest price of $69,000 on November 10. However, the prices started to decline after this, but that is not a concern. It added almost $545 billion to its market capitalization, which is not a small amount of money for any digital token globally. Also, during this year’s opening, it reached the $1 trillion mark in January. The speed of growth of this digital token was very high, and therefore, it also managed to cross the 2 trillion mark in May. Now, the total market capitalization of bitcoin stands at $3 trillion, and it is the highest for any digital currency in the world. However, bitcoin does not have a situation in its prices. Certain factors lead to the price volatility in bitcoin, and you need to be well aware of them if you are a part of the cryptocurrency space.
Elon musk‘s investment
Towards the beginning of 2021, the CEO of Tesla, Elon Musk, announced that the Company had invested $1.5 billion in bitcoin. It is the largest ever investment in cryptocurrencies by any global corporation. Therefore, the cryptocurrency market was affected a lot. Because of the massive investment from global electric car maker Tesla, cryptocurrency prices increased. Also, according to the report, Tesla was in talks with the United States securities and exchange commission so that they could accept bitcoin as a payment medium for its products. However, just right after the acceptance of bitcoin is the system of Tesla came on, the prices of bitcoin reached the $44,000 mark for the first time in history as of the News Spy site . It was the iconic meant for any cryptocurrency, and it led to the new era of 2021, which is going to be the most popular year for bitcoins.
Bitcoin reserves with global companies
When the CEO of Tesla announced that it was going to accept bitcoin as a mode of payment for its products, many other financial services companies so the opportunity and took it. Some of the global financial market players like MasterCard and Bank of New York announced that they are also looking forward to accepting digital assets. However, the primary intentions were not to add bitcoin to the financial system but to create reserves to keep themselves away from risk and volatility. However, some of the most famous patent groups, like the Marathon patents group, made a splash at the beginning of this year. It also made an investment of $150 million in bitcoin and added it to the treasury of the Company. If we keep Tesla aside, many other companies will also make large purchases in bitcoin was the first half of 2021. MasterCard and Twitter also added huge reserves of bitcoin in their reserves. There have been huge companies that made investments in bitcoins throughout the years, as some came up as a new venture for initiating bitcoin payments. Square is one of the companies that will accept any digital currency payments.
China‘s mining ban
When many people and companies are becoming enthusiasts for bitcoins, some nations have also been unusual for the cryptocurrency mining operations. China is one of the most important countries that have led to the clampdown of cryptocurrency mining. Bitcoin mining is seen as applied to China’s financial system, and therefore, it is completely banned. China’s central bank said that cryptocurrency transactions are illegal and affect the financial system. In May 2021, the Chinese government also banned cryptocurrency mining operations. Furthermore, towards the end of June 2021, China made sure that power supplies to the cryptocurrency mining firms were completely down, so they could not function within its geographical boundaries.