VIETNAM, December 30 – Illustration of Bitcoin. AFP/VNA Picture
By Ly Ly Cao
HÀ NỘI — Regardless of the volatility available in the market, cryptocurrencies nonetheless witnessed a powerful 12 months, with some currencies posting positive aspects of not less than 5,000 per cent in market worth, bringing enormous income to buyers.
The overall market capitalisation was round US$771 billion firstly of the 12 months and it is now at $2.2 trillion.
Some standard cash resembling Bitcoin and Ethereum have climbed by 35-45 per cent in worth in 2021. Nonetheless, earlier than reaching the present steady state, Bitcoin had seen some sturdy corrections.
In mid-February, Bitcoin surpassed US$1 trillion in market worth for the primary time as some main firms like Tesla began utilizing their stability sheets to purchase Bitcoin. The most important crypto in market capitalisation hit $65,000 in April earlier than plunging greater than 50 per cent in Could. The downtrend continued in June following Elon Musk’s tweets in regards to the environmental affect of mining and China’s tightening of crypto transactions.
The sell-off triggered the costs of some currencies to drop as a lot as 30-40 per cent in just a few hours. However Bitcoin patrons returned in September and the crypto worth broke over the $69,000 stage, then Bitcoin recorded the longest dropping streak. Bitcoin is progressively climbing again within the final days of 2021, buying and selling at round $51,000.
The cryptocurrency market additionally obtained quite a lot of optimistic information, together with the most important US cryptocurrency trade Coinbase efficiently itemizing on Nasdaq, partly affirming the place of cryptocurrencies within the funding market.
Some cash have posted extraordinary positive aspects this 12 months, up over 5,000 per cent resembling BakeryToken (BAKE), up greater than 6,000 per cent, Fantom (FTM), up over 7,500 per cent and Gala (GALA) – a community-based blockchain gaming platform – even rising over 40,000 per cent.
Due to this fact, it isn’t exaggerating to say crypto is essentially the most spectacular funding channel of the 12 months.
Phan Dũng Khánh, Head of Funding Advisory at Maybank Kim Eng, mentioned that there are two standard funding channels in 2021, that are securities and digital property.
“Digital property, together with cryptocurrencies, are a buying and selling channel that has not been recognised by regulation, however the variety of buyers collaborating available in the market continues to be very giant,” Khanh mentioned.
A report from Chainalysis, a blockchain analytics agency, confirmed that Việt Nam ranks fourth among the many largest international locations by way of income earned from cryptocurrency, behind China, Japan and South Korea.
Of which, Vietnamese buyers have earned $400 million in 2020 from investing in Bitcoin alone, rating thirteenth on the planet. Beforehand, in response to a survey by Finder and Statista, Việt Nam additionally grew to become the world’s prime nation by way of the proportion of the inhabitants proudly owning cryptocurrencies.
Đào Tuấn Anh, a banker, mentioned that he has invested round $3,000-4,000 in cryptocurrencies since Could. “Due to social distancing, I am unable to go to work and have quite a lot of free time, so I appeared for funding channels and the crypto market is kind of standard now,” Tuấn Anh mentioned.
“I do not spend a lot on this channel since it’s nonetheless new to me. I select to allocate my capital in numerous digital cash, together with Bitcoin.
“Though the crypto market was extremely unstable and Bitcoin has dropped lately, I nonetheless gained 15 per cent.
“With different cash, some I gained 30 per cent, however some misplaced as much as 50 per cent.”
Though there are forecasts in regards to the downtrend of cryptocurrencies subsequent 12 months, many specialists nonetheless consider that the market will proceed to be lively.
Because the crypto market could be very dangerous, with many pretend crypto exchanges in Việt Nam, buyers ought to be taught and perceive the property they will put money into. In the meantime, choosing the right time to hitch the market can be a vital issue. — VNS
