The 2021 cryptocurrency market bull run has led many coins towards a straight trajectory to the moon. The king of cryptocurrency – Bitcoin (BTC) – more than doubled in value while the queen, Ethereum (ETH), achieved a new all-time high. Other altcoins have been on a roll too, giving double-figure performances and establishing record highs day in and day out.
Bitcoin is now worth more than $1 trillion while the next five major cryptocurrencies’ market capitalization stands at almost half a trillion. The combined market capitalization has surpassed $2 trillion for the first time. This is a testament to the increasing interest and growing mass adoption of cryptocurrencies. While some people bet on cryptocurrencies because of the high-risk & high-reward features, other wholeheartedly believes cryptocurrencies are going to become the future standard of payments.
The institutions haven’t been lagging in accepting cryptocurrencies as well. After the hard crash of the 2018 bull run, institutions were some of the most vocal critics of cryptocurrencies but now institutionary giants like PayPal, Tesla, Morgan Stanley and others are leading the crypto adoption race.
However, there have also been an increase in the growing skepticism about cryptocurrencies. Bitcoin is fast becoming a safe haven asset like gold while it is not at all suitable for the role. The high-risk factor involved in the crypto market has led to governments warning their citizens like the Singapore Monetary Authority whereas the Indian regulators are debating a cryptocurrency ban.
Moreover, the environmental costs associated with cryptocurrency mining has also been gaining attention. Bitcoin consumes more energy on a single transaction than a British household in two months. Various other comparisons have been drawn to portray the dire situation we are currently in. But, is the growing skepticism in one side going to hinder the growing interest in cryptocurrencies or is it going to fall on deaf ears?