Growing Interest in Bitcoin is Driving Growth in the Cryptocurrency Business
The year 2021 has started optimistically for the major cryptocurrencies, which have increased in value. Along with the increase in value, the industry also saw a significant increase in business entities and investment.
So, the British financial Supervisory authorities (FCA) reported that about two hundred startups in the field of blockchain and cryptocurrency have recently applied for a license to operate in the country. Even though the government has tightened regulations to prevent illegal activities related to cryptocurrencies, the interest is not going to decrease.
The positive thing is that such a large number of applications proves that business participants are ready to work within the existing regulatory framework, respecting the law. At least in the UK.
Showing leadership
This growth has largely been driven by giant companies from traditional finance that have entered the cryptocurrency market. At the end of 2020, PayPal began offering cryptocurrency services to its customers. Despite some problems from the very beginning, the service attracted many new users to the industry.
Visa has also introduced several digital currency initiatives. The last one involved partnering with Binance to provide cryptocurrency cards to the exchange’s users. Delivery started at the end of 2020.
On February 10, 2021, the payment giant MasterCard announced plans to include cryptocurrencies in its network. At the moment, it is unclear how the network will work and what cryptocurrencies it will include.
Naturally, such steps by global giants reveal the huge potential of the entire industry, attracting new users and increasing trust. In turn, this creates numerous opportunities for the development of the cryptocurrency business. For this reason, it is expected that the number of startups in the industry will continue to grow.
Such intense interest and growth have triggered an unprecedented price increase for all major cryptocurrencies. Bitcoin, the flagship cryptocurrency, broke an all-time high of $55.00. According to CoinMarketCap, Binance Coin has seen a huge increase of more than 130% and soared to more than $300.
Initially, the growth began with the fact that traditional finance adopted digital solutions. Since the beginning of 2021, a wave of large investments has sharply raised rates. For example, when Elon Musk invested $1.5 billion in bitcoin, the price of the coin reached $ 48 thousand.
Now, the American financial giant Morgan Stanley plans to invest about $150 billion in bitcoin. Previously, the bank’s management was quite skeptical about cryptocurrency. Now, however, its co-chairman, Daniel Pinto, says that “we will have to participate.”
This change in attitude, along with grandiose investment plans, can lead to even greater price increases. From now on, the $100,000 forecasts don’t seem at all fantastic.
Despite the increasing pressure from the regulators, the quantity of Bitcoin anonymization services increased. Best Bitcoin Mixers are still the main privacy shield for cryptocurrency users.
In general, the cryptocurrency industry is in a growing stage, offering numerous opportunities for business, mining, and trading. It is unclear how long this trend will last. However, if interest and investment do not abate, prosperity can be very long-lasting.