VIETNAM, December 30 – Illustration of Bitcoin. AFP/VNA Photograph
By Ly Ly Cao
HÀ NỘI — Regardless of the volatility out there, cryptocurrencies nonetheless witnessed a powerful 12 months, with some currencies posting positive aspects of at the least 5,000 per cent in market worth, bringing large earnings to traders.
The full market capitalisation was round US$771 billion firstly of the 12 months and it is now at $2.2 trillion.
Some fashionable 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 regarding the environmental affect of mining and China’s tightening of crypto transactions.
The sell-off brought on 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 degree, then Bitcoin recorded the longest shedding streak. Bitcoin is steadily climbing again within the final days of 2021, buying and selling at round $51,000.
The cryptocurrency market additionally obtained a variety of optimistic information, together with the biggest US cryptocurrency alternate 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.
Subsequently, 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 fashionable funding channels in 2021, that are securities and digital belongings.
“Digital belongings, together with cryptocurrencies, are a buying and selling channel that has not been recognised by regulation, however the variety of traders collaborating out there remains to be very massive,” Khanh mentioned.
A report from Chainalysis, a blockchain analytics agency, confirmed that Việt Nam ranks fourth among the many largest international locations when it comes to earnings earned from cryptocurrency, behind China, Japan and South Korea.
Of which, Vietnamese traders 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 turned the world’s prime nation when it comes to 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 a variety of free time, so I regarded for funding channels and the crypto market is kind of fashionable 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 several digital cash, together with Bitcoin.
“Although the crypto market was extremely risky 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 concerning the downtrend of cryptocurrencies subsequent 12 months, many specialists nonetheless consider that the market will proceed to be lively.
Because the crypto market may be very dangerous, with many faux crypto exchanges in Việt Nam, traders ought to study and perceive the belongings they’ll spend money on. In the meantime, choosing the right time to hitch the market can be a vital issue. — VNS