2021 is coming to an end and a lot has happened again this year. In this week’s Timo Report, a brief glimpse into the biggest positive developments of Bitcoin (BTC)!
Bitcoin mining verbod China
Starting with a development doesn’t sound very positive at first. China shut down cryptocurrency mining and its activities in general this year To prevent. This caused a panic in the market at that time, which led to a sharp drop in prices. According to some even the beginning of the end of Bitcoin!
So why is this a positive development for Bitcoin? For a long time, the vast majority of the network’s computing power was generated by Chinese miners. For this reason, there have been concerns that bitcoin is centralized and that China could wield power over the network. This fear has completely evaporated now that computing power is being generated in a more decentralized manner by miners around the world. And the network itself is now already In full force!
El Salvador embraces BTC
Perhaps the most significant development in 2021 was El Salvador’s embrace of Bitcoin as a legal currency. Salvadorans can use cryptocurrency along with US dollars to pay for groceries, a cup of coffee, and anything else you can think of. While it may not immediately lead to widespread mass adoption, it is still an important step.
It puts Bitcoin on the same base as the dollar. In small steps, Bitcoin appears to be entering the world stage as a virtual currency of the Internet that is not controlled by any central bank. If Bitcoin continues to do well in El Salvador, the country could be a good example for other countries that love Bitcoin.
200 million new bitcoin wallets
What also happened in small steps in the beginning was the growth in the number of bitcoin wallets. This growth no longer takes place in small steps. This year, 200 million new wallets have been added to the network. This does not mean that 200 million new users have already been added to the network. Of course, any person or company can create multiple wallets to distribute their bitcoins for security reasons.
This year, 200 million wallets have been added (the data goes until the end of November). There are now at least 905 million wallets. Thus, growth, which has been going on for years, will continue into 2021.
And then of course there was the approval of the first American exchange-traded fund (ETF). An ETF is an exchange-traded fund whose shares provide exposure to Bitcoin. This is especially interesting for large institutional investors who do not want any administrative hassles and do not want to risk owning bitcoins themselves.
More ETFs have since been approved in the US (in addition to the ETFs that already exist in other countries, of course). Still waiting for a “spot ETF”. That kind of money would really be buy bitcoins And hold them, unlike these ETFs that are based on Bitcoin futures. Will a Bitcoin ETF Get Approved in 2022?
There is still a lot to look forward to when it comes to Bitcoin and of course the broader crypto market. Crypto Insiders will also keep you updated in 2022 Crypto News. Merry Christmas and Happy New Year in advance!
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