The Year 2021 in 10 Key Moments for Bitcoin.
2022 will be an even more exceptional year for you if you are a Bitcoin HODLer.
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And another year of writing about Bitcoin every day!
This year of 2021 is coming to an end and I realize how lucky I am to be able to share my thoughts and opinions on the Bitcoin revolution daily. It will soon be five years that I have been writing daily on this incredible monetary revolution that will change the world of the future for the better.
As a privileged witness to the evolution of Bitcoin, 2021 will remain a year apart in my eyes. Those who have already read my end of the year 2020 post must be thinking that I tend to repeat myself since I was already saying that about 2020. Indeed, the COVID-19 pandemic and the subsequent economic crisis will be a tipping point for Bitcoin.
But with a revolution as young as Bitcoin, every year counts. This will be the case again in 2021. A year for which I'll pick out 10 highlights for you.
The year 2021 starts strong with CNN announcing a Bear Market after a 20% drop in the price of Bitcoin
It all starts in January. After a fantastic start to the year, the price of Bitcoin passes $30K, then $40K. It's total euphoria on the market. A correction causes the price of Bitcoin to drop rapidly to just above $29K. That's all it takes for CNN to announce a Bear Market:
This was a special moment for me because it showed us how out of touch the general media is with how a free market like Bitcoin works. In a free market, a 20% drop in a few days is nothing more than a correction. Rather than talking of Bull or Bear Market, you must understand that Bitcoin is first and foremost a Freedom Market.
What happens next will prove all Bitcoiners right, as the price of Bitcoin resumes its ascent to new ATH.
It was at this time that Elon Musk took the opportunity to bring Tesla into the Bitcoin world. A purchase of BTC with Tesla's cash reserve was announced in early February 2021 but completed during this January dip. The announcement of Tesla's entry into Bitcoin triggered a new wave of bullishness that took the price of Bitcoin beyond $50K.
On February 22, 2021, Bitcoin finally broke the $1 trillion market cap for the first time in its history. This remarkable success was achieved in only 12 years. In comparison, it took Google 21 years to reach this milestone, Amazon 24 years, Apple 42 years, and Microsoft 44 years.
The price of Bitcoin continued to hover above $50K thereafter before a new phase of euphoria when Coinbase went public in mid-April 2021. Buoyed by this news, Bitcoin's price reached a new ATH close to $65K.
A few days later, China announced that it was banning Bitcoin mining in its territory. Elon Musk also took the opportunity to end support for BTC payments for Tesla cars on the spurious grounds that he was concerned about the environmental impact of the Bitcoin network. I say spurious because nothing had changed between Tesla's entry into this world in February 2021 and its exit in May 2021.
Elon Musk simply gave in to the political world that was pushing him to give up this support of BTC if he wanted to get credit in the new stimulus package that Joe Biden was preparing at the time.
The announcement of China's ban on Bitcoin mining caused a sharp drop in the price of Bitcoin, which hit a low just above $29K during July 2021. While everyone is worried about the future of the Bitcoin network, miners are leaving China for more welcoming lands. This is the great exodus of Bitcoin mining from China to America.
While the Hash Rate of the Bitcoin network has now surpassed the levels before China's ban, over 42% of the Bitcoin network's Hash Rate is now in America. This is great news for Bitcoin, whose values of freedom are better suited to countries where democracy is the chosen political system.
El Salvador becomes the first Bitcoin Nation on September 7, 2021
It is on September 7, 2021, that Bitcoin makes history in El Salvador. The country chaired by Nayib Bukele became the first nation to make Bitcoin an official currency. In the aftermath, a new coordinated attack was carried out against Bitcoin, whose price collapsed in a few hours amid concerns that Chinese real estate giant Evergrande would go bankrupt.
While some people start to panic at the thought of a Bear Market, the rumors and FUD dissipate to give way to an October that we like to rename the Uptober. The price of Bitcoin starts to rise again. The Evergrande risk then appears to be limited and the ban on Bitcoin ownership in China does not have the expected effect by the Xi Jinping regime.
On November 10, 2021, the price of Bitcoin finally reached a new ATH of $69K. A few days later, the biggest upgrade in the Bitcoin network in 4 years takes place with the activation of Taproot. This is great news because Taproot will be the foundation for all the big developments to come over the Bitcoin blockchain in the future. In the field of smart contracts in particular.
The concern arises again and we finally witness leverage flush on the night of December 3 to 4, 2021 that made the price of Bitcoin plunge from $56K to $42K in a few hours. Time once again to talk about a Bear Market for some. This is not my opinion, and you should be alerted to this rush of some to talk about Bear Market as soon as the Bitcoin price corrects by 20-30%.
Such corrections are part of the game with Bitcoin. You have to learn to live with it and build your game by taking advantage of these opportunities to accumulate more BTC each time. If you can do that, then you will be among those who will benefit most from BTC in the future.
Michael J. Saylor is one of those people as he just announced that MicroStrategy has once again strengthened its position in Bitcoin. MicroStrategy now owns 124,391 BTC acquired for an average of $3.75B. At the current price of Bitcoin, MicroStrategy's holdings represent over $5.3B.
While we have surpassed the issuance of 90% of the total BTC supply in December 2021, MicroStrategy now owns just over 0.65% of the total Bitcoin in circulation. Impressive!
One last impressive number to end this year 2021: over 130 million users for Bitcoin. That's a lot and a little at the same time. A lot when you think that Bitcoin was officially launched just 13 years ago (in a few days), and not much when you think that there are 7.8 billion people on Earth. If you buy Bitcoin today, you will be among the early adopters who will benefit most from its revolution in the future.
The key is the ability to live your life on your own terms. A liberating power that Bitcoin gives to all those who decide to fully embrace its revolution.
2022 will be an even more exceptional year if you are a Bitcoin HODLer
For 2022, Bitcoin will continue to surprise you on every level in my opinion. Rather than make empty predictions about its price, I'd rather remind you of something that will keep you benefiting from Bitcoin: take the long view by making a time paradigm shift. With a monetary revolution like Bitcoin, the key is to stop thinking in days, months, or years, and start thinking in decades.
If you can do that, then you'll be able to adopt the same strategy that MicroStrategy did with Bitcoin: the best. The best because it is the simplest and most effective for most people.
To conclude, it remains for me to wish you a happy New Year 2022. May this year bring you health, happiness, and prosperity for you and your loved ones.
Happy New Year 2022!
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