2021 is coming to an end. What major events and important nodes have been recorded in the history of encryption?
For the blockchain and crypto circles, 2021 is a year full of drama and a bumper year. This year, various tokens hit new heights, and the total market value of cryptocurrencies once exceeded US$3 trillion; the WSB effect swept the crypto circle and staged a magical plot; the “first cryptocurrency” Coinbase successfully brought cryptocurrencies into the mainstream vision; many places The pilot program was launched, and the digital renminbi accelerated to lead the world; domestic mining and exchange clearing ebbs have been staged, and de-China has become a foregone conclusion; El Salvador historically adopted Bitcoin as legal tender; Bitcoin futures ETF was finally approved by the US SEC…
This year is the beginning of the golden age of the crypto circle. Hot spots such as MeMe coin, NFT, GameFi, New Public Chain, Meta Universe, and DAO have risen in succession, and on-chain applications and assets have experienced explosive growth. At the same time, the unlimited potential released by Crypto’s innovative genes is also being recognized by more and more funds, attracting up to 30 billion US dollars, exceeding the total of previous years.
2021 is coming to an end. What major events and important nodes have been recorded in the history of encryption? PANews will review the major annual events of the industry with everyone, starting from history, and looking at the new pattern of the industry.
Retail investors battle Wall Street, WSB effect ignites encrypted Meme
In January of this year, a “century air squeeze war” was staged between retail investors in US stocks and Wall Street bears. The cause was that when GameStop (GME) was on the verge of delisting, the short-selling agency Citron claimed on Twitter that GME’s stock price would quickly fall back to $20 per share. The tweet immediately caused US retail investors to attack, and they began to subscribe on Reddit. The WallStreetBets (WSB) sector formed a short-squeeze army to buy GME stocks in large quantities. With the efforts of retail investors and long-term institutions, GME’s stock price soared more than ten times, which also caused heavy losses to Wall Street institutions such as Citron and Melvin Capital.
It can be said that this war that began with GME’s stock price is more like a retail uprising against Wall Street. This WSB effect extended to cryptocurrencies. When Dogecoin was mentioned many times by the WallStreetBets imitation account, the price doubled several times in a day. Not only that, but the crypto community is calling for collective action to smash the multi-billion dollar positions of hedge funds
Although Wall Street institutions have used methods such as “unplugging network cables”, “deleting codes”, and “closing servers” to prohibit retail investors from buying related stocks and block the WallStreetBets server, the Meme culture that carries the spirit of WSB has been ignited in the encryption circle. Later, the rise of Meme coins such as Shib, GM, and People laid a certain foundation.
Digital RMB pilot “expansion”: from closed testing to multi-site linkage
In November 2019, Fan Yifei, deputy governor of the central bank, announced that the digital renminbi has basically completed top-level design, standard formulation, function research and development, and joint debugging and testing. The next step will be to select pilot verification areas, scenarios, and service ranges, and steadily promote digital legal tender. Launch an application. In 2020, the digital renminbi pilot is officially called “4+1”, and internal closed pilot tests will be conducted in Shenzhen, Suzhou, Xiongan New District, Chengdu and future Winter Olympics scenes.
Since 2021, the digital renminbi, which has undergone many years of research and development and testing, has begun to carry out digital renminbi red envelope pilots in Shenzhen, Suzhou, Beijing, Chengdu and other places. A certain amount of digital renminbi is sent to a personal digital renminbi wallet in the form of red envelopes mainly through lottery. , Individuals can make purchases at designated merchants within the validity period. In addition to the expansion of group coverage and consumption scenarios, payment methods such as “touch one touch” and “dual offline” are also launched to stress test the concurrent performance of the digital renminbi system.
Making cars and speculating coins, Tesla bought $1.5 billion in Bitcoin
In February of this year, Tesla announced that it had purchased about 1.5 billion U.S. dollars in bitcoin and is expected to start accepting bitcoin as a payment method for the purchase of its cars and other products soon. Affected by this, Bitcoin rose sharply in a short time. According to Tesla’s first quarter and second quarter financial reports, the average purchase price of Bitcoin is about $29,306.
However, Tesla CEO Musk reversed his attitude shortly afterwards. He claimed that because of concerns about the use of fossil fuels in Bitcoin mining, Tesla will suspend accepting Bitcoin payments. Subsequently, Musk once again stated that Tesla did not sell Bitcoin. According to the third-quarter financial report, Tesla’s Bitcoin holdings are worth approximately $1.26 billion.
Musk’s “turning over” immediately triggered dissatisfaction and accusations from the crypto community. In the quarterly documents submitted by Tesla to the U.S. SEC, the company also stated that “the practice of cryptocurrency trading may be restarted in the future. We believe in the long-term potential of digital assets as investment and cash substitutes.” Not only that, as a dog dog. Coin lovers, Musk also revealed that in the future, Dogecoin will be able to buy some Tesla peripheral products.
It is worth mentioning that Musk said at The ₿ Word conference, “If Bitcoin falls, I will lose money. I may buy but not sell. I hope Bitcoin succeeds.”
Encryption art out of the circle, Beeple sold a pair of NFT for US$69 million
At the end of the first quarter of this year, encryption art ushered in a historic moment. On the evening of March 11, the work “Everydays – The First 5000 Day” by the well-known artist Beeple was auctioned by NFT fund Metapurse founder Matakovic at Christie’s auction house for a high price of 69.35 million US dollars. The work is composed of 5,000 pictures. It is an artistic NFT for Beeple to commemorate his continuous creation of 5,000 days and one work per day starting on May 1, 2007.
As the first purely digital artwork supported by a large auction house, this work makes Beeple the third most valuable living artist after Jeff Koons and David Hockney. And in this auction,
In addition to “Everydays-The First 5000 Day”, CryptoArt.io data shows that Beeple has sold 1,351 works worth more than $170 million.
Encrypt the first share! Compliance “San Hao Sheng” Coinbase successfully listed
As the first crypto trading platform to test the waters of the U.S. open market, Coinbase’s successful listing on NASDAQ not only reflects the recognition of crypto assets by traditional markets and regulatory agencies, but also opens the door to compliance for cryptocurrencies to the world.
In fact, Coinbase is a model in the industry in terms of business compliance operations. In terms of licenses, Coinbase has invested heavily in large-scale applications and acquisitions of licenses, and has a series of digital asset operation compliance licenses for payment, savings, loans, financial derivatives transactions, alternative asset transactions, brokerage transactions, etc.; in terms of business, Coinbase attaches great importance to going online The risk of the project is large, and other trading platforms have launched IE0 and other gameplay; in the appointment of personnel, Coinbase has established the position of chief compliance officer.
However, listing is not the end of Coinbase. In the plan of founder Brian Armstrong, the exchange is only the first step in Coinbase’s ecological construction, and the profits earned by the exchange will continue to be used to participate in the next stage of infrastructure construction and investment, which will eventually target one billion people Occupies a place in the open financial system of China.
The tide of rectification of China’s mining circle: complete retreat, mining enterprises “going to sea”
In the competition for the right to speak in Bitcoin’s computing power, China has withdrawn from the stage of history, and the Western world has gained more bargaining chips. The 51st meeting of the Financial Stability and Development Committee of the State Council in May this year called for cracking down on Bitcoin mining and trading, and resolutely preventing the transmission of individual risks to the social field. Subsequently, the governments of Inner Mongolia, Qinghai, Xinjiang, Sichuan, Jiangsu, Zhejiang, and Yunnan successively began to investigate and shut down illegal virtual currency mining activities.
Affected by this, a number of mining machine service platforms, including Lebit, Huobi Mining Machine, Bit Deer and Mars Cloud Mine, announced that they will block IP in China and provide related services such as mining machine hosting in mainland China. At the same time, these mines began to plan to move overseas, including places with looser policies and cheap electricity prices in Europe and North America.
The first country in the world to legalize Bitcoin, El Salvador takes the lead in “eating crabs”
El Salvador is the first country in the world to announce that it will officially use Bitcoin as a legal currency. After passing a bill in June this year to establish Bitcoin as legal tender, El Salvador officially adopted Bitcoin as the legal tender of El Salvador in September. This means that Bitcoin will have the same status as the U.S. dollar in El Salvador, and residents can use Bitcoin to pay for goods, purchase services, and even pay taxes.
With the entry into force of the bill, El Salvador also established a trust fund of US$150 million, and launched a Bitcoin wallet and a Bitcoin ATM. Not only that, El Salvador is also planning to build the first Bitcoin city, and plans to issue a $1 billion Bitcoin bond on the Bitcoin side chain Liquid, build Bitcoin city infrastructure and buy more Bitcoin. Up to now, the country’s President Nayib Bukele has repeatedly announced the purchase of Bitcoin.
However, El Salvador’s move has also caused controversy. For example, the World Bank believes that cryptocurrency lacks transparency and documented environmental damage, it will not help El Salvador establish Bitcoin as legal tender, and refuses to donate and provide technical assistance to the country. .
Ten ministries and commissions joined forces to “strike” virtual currencies, and exchanges such as Huobi completely cleared Chinese users
On September 24, ten ministries and commissions including the People’s Bank of China jointly issued the “Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype.” The notice pointed out that virtual currency trading hype activities are on the rise, disrupting economic and financial order, breeding gambling, and illegal fundraising. , Fraud, pyramid schemes, money laundering and other illegal and criminal activities that seriously endanger the safety of people’s property. In order to further prevent and deal with the risks of virtual currency transaction speculation, and effectively maintain national security and social stability, the notice clearly pointed out that virtual currency exchange, virtual currency trading as a central counterparty, matching services for virtual currency transactions, token issuance financing, and virtual currency Virtual currency-related businesses such as currency derivatives transactions are all illegal financial activities, which are strictly prohibited and resolutely banned in accordance with the law; the provision of services by overseas virtual currency exchanges to residents of my country through the Internet is also an illegal financial activity.
At the same time, in response to the work measures to combat virtual currency trading hype, the “Notice” pointed out that one is to establish a normalized working mechanism of departmental coordination and central and local linkage; the second is to strengthen the monitoring and early warning of the risk of virtual currency trading; the third is to build a multi-dimensional , Multi-level virtual currency transaction speculation risk prevention and disposal system.
Under the supervision of “no dead ends”, Binance, Huobi, Spark Pool, BHEX, DeBank and TokenPocket have successively announced the closure or restrictions on users in China, covering exchanges, mining pools and wallets. Among them, Huobi Warriors broke their wrists and cleared Chinese users, not only banning mainland users’ currency transactions, but also delisting OTC CNY transactions. Since then, under the strong supervision of the primary and secondary markets, from mining and accounting rights to transactions, “de-sinicization” has become a major trend.
Get the first step, the first U.S. Bitcoin futures ETF approved for listing
After years of trial and error, the US SEC finally approved the Bitcoin futures ETF (BITO) issued by the fund management company ProShares for the first time in October. ProShares Bitcoin Strategy ETF is registered with the US Commodity Futures Trading Commission (CFTC), traded on commodity exchanges, has standardized and settled Bitcoin futures contracts. The main investment strategy is to seek capital by managing the exposure of Bitcoin futures contracts Increase value, but not directly invest in Bitcoin.
In other words, the launch of Bitcoin futures ETF means that Bitcoin’s compliance process in the United States has achieved significant results, and it also means that complex investment thresholds have been lowered, and existing investment institutions and individual investors can directly buy in the securities market. , To increase considerable incremental funds for the crypto market.
On the first day of listing, BITO trading volume exceeded US$1 billion, which was much higher than the trading volume of important ETFs such as gold, silver, and oil on the first day of launch. In addition to BITO, the Bitcoin Futures Exchange Traded Fund (XBTF) of investment company VanEck and the Bitcoin Futures ETF (BTF) of asset management company VanEck have also been approved. However, the US SEC still rejected the spot Bitcoin ETF applications submitted by WisdomTree and Valkyrie.
Attitude reversal, U.S. Congress releases friendly signals on encryption
Different from the previous hostility to cryptocurrencies, the US Congress recently revolved around the title “The Future of Digital Assets and Finance: Understanding the Challenges and Benefits of US Financial Innovation” or the most active, constructive, and bipartisan in history. An encrypted hearing.
During the five-hour hearing, executives from stablecoin issuer Circle, crypto exchanges Coinbase and FTX, Bitcoin mining company BitFury, cryptocurrency payment system Stella Development Foundation, and blockchain company Paxos spoke to crypto exchanges , Stable currency products, digital asset supervision issues, and federal regulatory agencies’ response measures were discussed in four aspects.
In response to this, in addition to asking questions about cryptocurrency price volatility, insufficient information disclosure, and Bitcoin energy consumption, they also expressed a good impression of the crypto industry, and believed that the current supervision tends to be excessive, and encouraged practitioners to develop their own businesses. . Among them, Rep. Patrick McHenry also said, “The impact of cryptocurrency on the future may be greater than the Internet. How do we make sure that the Web3 revolution takes place in the United States. What is needed is reasonable rules, and there is no need for legislators to just because of the unknown. Fear and subconscious supervision, and supervision due to unknown fears will only stifle the innovation ability of the United States and put the country at a disadvantage in the competition.” Patrick McHenry pointed out that the technology in the encryption field has been regulated, but the existing regulatory framework may Clumsy and not up-to-date, and has a tendency to over-regulate.
Looking back at 2021, the encryption industry has accelerated to the mainstream world in the sector of rotating performances, and has become one of the most important propositions in the world. Looking forward to 2022, Crypto is showing strong vitality in the embryonic beginnings of Metaverse, Web3.0, DAO, etc., and the golden age of cryptocurrency has begun.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/say-goodbye-to-2021-the-beginning-of-the-golden-age-of-the-crypto-circle-these-big-events-are-worth-remembering/
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