- 2020 was the year of Bitcoin, DeFi, and CBDCs
- Several themes developed as the year went in
- What will be the key areas to look out for in 2021?
2020 was a crazy year for cryptocurrencies, with Bitcoin going bananas and DeFi coming from nowhere to spatter the community with terms like yield farming, rug pull, and apeing in. So what can we expect for 2021? We at FullyCrypto aren’t ones for making predictions, but here are three areas of the cryptocurrency spectrum that we think will dominate the space in the coming 12 months.
Oversight
2021 will very likely witness the rolling out of the toughest and most widespread crypto oversight we have yet seen. What started in 2018 will in many ways culminate in 2021, with countries like America, South Korea, China, and Russia preparing to announce sweeping reforms to cryptocurrency laws.
The stated aim of these new regulations is to reduce the usage of cryptocurrencies by terrorists and cyber criminals, but it just so happens that they will also allow governments to monitor cryptocurrency transactions where they were previously unable.
The various battles that will take place in 2021 on this front will have cryptocurrency’s very soul at their heart.
CBDC
CBDC turned out to be one of the watchwords of 2020, and 2021 will only see an increase in its prevalence. Dozens of countries worldwide are in the process of planning, trailing, or even implementing their own CBDCs, with these numbers set to increase dramatically in 2021 as more come online.
The sovereign stablecoin genie is now well out of the bottle, and there will be no putting it back, especially with Facebook’s Libra set to launch in early 2021.
Bitcoin
There are thousands of tokens in the cryptocurrency ecosystem, but in 2021 there will be only one on everybody’s lips – Bitcoin. The original and best, the price of Bitcoin is well placed to explode in 2021 after a riotous 2020, spreading its tentacles into areas of the financial system years earlier than expected.
Yes, other blockchains are faster, yes other coins will outpace it in terms of price growth in 2021, but the institutional uptake in the latter part of 2020 has proven that Bitcoin has found an entire new audience and, to coin a well-used 2020 phrase, the virus is spreading.
Will 2021 Spring a Surprise?
So there we have it – those are the three areas we think will dominate the crypto space in 2021. Do you agree with us, or do you think there will be a surprise entry in this list? Let us know!
