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Thursday, January 26, 2023

Adoption Of Cryptocurrency In 2021: Growth Of Bitcoin And Ethereum As They Prepare To Face Rivals

With Bitcoin and crypto assets having a decent 2020, there is hope for crypto to grow further in 2021 with a higher rate of returns and exclusivity from mainstream finance.  

How Accurate were the Predictions about Bitcoin in 2020?

With the halving of Bitcoins in May, the cryptocurrency demand was expected to go up. The Bitcoin value saw a rise from $5000 to $9000 in May. Until 31st October, the value kept on increasing and reached $14,000. The value of Decentralized Finance or DeFi was also predicted to grow from $676 million on 1st January to $1 billion in the present moment.     

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True to the predictions, the use of cryptocurrency is also seen on a high with an estimation of 100m people using crypto assets in the present situation.  

Growth of Bitcoin Adoption in 2021

The Arcan Crypto Head of Research, Bendik Schei has predicted that the usage of Bitcoins will only see an upward curve in the year 2021 with its huge demand at the present moment. The Bitcoin facilitation would be conducted by a huge infrastructure development that has allowed for improved accessibility for cryptocurrency.

Hxro Labs’ Senior Analyst, Nick Kote is one of the many who believe that after the strong growth of Bitcoin in 2020, there are many institutions that would look to buy Bitcoin as a backup asset.     

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With the growth of Bitcoin, it is expected that there will be a parallel growth for stablecoins who serve the purpose of providing the markets with liquidity where the trade of fiat-to-crypto becomes difficult.  

Chain Analysis’s Head of Research Kim Grauer has claimed that she hopes for stable growth of Stablecoin after it has been seen to be very effective in offering value to stable stores and conducting day to day transactions.

Bitcoin Etherium
Bitcoin Ethereum

Growth of Ethereum and DeFi

With a massive growth of DeFi seen in 2020, Ethereum has received a solid boost and consolidated itself as the ranked 2 crypto platform.

DeFiner Co-founder and CEO Jason Wu has predicted stable growth for Ethereum in 2021 after it was confirmed that the largest stablecoin transactions are all conducted on the network of Ethereum.

Chains of Interobility

 It has been predicted that increased use of cryptocurrency platforms would allow an increase of interoperability with external sources.      

 Dxone co-founder and CEO Luciano Nonnis has predicted an increased adoption of Chainlink.  As it gives a mechanism to build oracle networks which are decentralized, it would serve as a link between the industry and blockchain as it would allow the exchange of data in a world devoid of crypto.

Dave Hodgson, Chief Investment Officer of NEM has confirmed that interoperability chains would be occupied in the coming year as Cosmos, Polkadot, and Cardano are expected to enable the migration of Ethereum.    

Obstacles Ahead of Bitcoin and Ethereum

With the next year predicted to see the growth of cryptocurrency Bitcoin and Ethereum might face certain obstacles in the process of being adopted. According to Bendik Schei, there is huge room for improvements, and it is early days for Bitcoin before it is used as a method of payment by users.

Dave Hodgson claims that due to uncertain dates on Ethereum 2.0, Ethereum is in talks with a huge number of chains and therefore suffering from fatigue in their project.  

If Bitcoin and Ethereum are able to overcome these issues, 2021 is going to be an eventful year for the adoption of cryptocurrency.

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