TOP 8 Cryptocurrency Events That Changed the Industry
TOP 8 Cryptocurrency Events: There is no present and future without the past. This is especially true for the crypto world. We rely on past data to gain the most accurate results when considering price predictions for digital coins and analyzing innovations. In the highly volatile crypto industry, we’ve witnessed many astonishing events. However, several significant moments in the history of cryptocurrency reshaped the crypto world. This article takes you through the memory lane and reviews the eight most essential events in crypto history.
Coincidentally, why was cryptocurrency launched?
There is no origin story for cryptocurrency. The concept of digital currency was born in response to problems with conventional banking. People wanted a way to transmit and receive money that didn’t rely on official institutions or take days to be confirmed, so they looked for a substitute for fiat currency. Cryptocurrencies provide a decentralized, transparent, and safe option to store and transfer value.
Among the most important motivations for the creation of bitcoin are:
- Addressing limits of traditional finance. In the wake of the financial crisis of 2008, cryptocurrency has emerged as a means for people to regain control of their own money by decreasing their need for central banks.
- Digital currency allows for decentralized, secure transactions. Without a trusted third party or central bank, they can conduct secure, transparent transactions using blockchain technology and cryptography.
- Cryptocurrencies offer a replacement for traditional fiat currency. Their dual role as digital economy mediums of exchange and store of value allows them to operate independently of conventional financial systems.
Eight pivotal moments in cryptocurrency’s past
When it comes to contemporary finance, few sectors are as exciting as cryptocurrency. Cryptos are decentralized digital currencies that we utilize for everyday transactions like paying bills, TOP 8 Cryptocurrency Events, sending money, etc. Throughout cryptocurrency’s history, what pivotal moments have changed the landscape of the industry? They are best reviewed in the order in which they occurred.
1. The Mt. Gox hack in February 2014
The world of Bitcoin was rocked in February 2014 by the Mt. Gox hack. Users were frightened when the biggest Bitcoin exchange suddenly stopped working. Over $450 million worth of bitcoins—about 850,000—were stolen by hackers. As a result, trust in cryptocurrency exchanges plummeted and the price of Bitcoin fell by 20%.
Following this, Mt. Gox initiated a protracted legal struggle over the misplaced monies by declaring bankruptcy in both Japan and the United States. The incident brought greater attention to the importance of enhancing security measures and prompted regulators to step up their monitoring. It helped pave the way for self-custody solutions and decentralized finance (DeFi) systems, which mitigate the risks associated with centralized exchanges.
2. Bitcoin Cash Hard Fork: August 2, 2017
The scaling debate that led to the Bitcoin Cash hard fork in August 2017 was a watershed moment in the history of cryptocurrencies. Roger Ver and Craig Wright, two important personalities, were at odds about whether to raise the block size limit from 1 MB to 8 MB (and then 32 MB) to facilitate more transactions and lower costs, which ultimately led to the split. Bitcoin holders were given an equal amount of Bitcoin Cash after Bitcoin Cash split off from Bitcoin on August 1, 2017, forming a new blockchain and cryptocurrency.
As a result of this hard fork, TOP 8 Cryptocurrency Events, Bitcoin Cash and Bitcoin were widely considered to be two separate currencies within the Bitcoin community. The price of Bitcoin Cash first skyrocketed, hitting over $4,000 in December 2017.
3. COVID Crash in March 2020
The COVID-19 pandemic in March 2020 was a watershed moment in cryptocurrency history, leading to a precipitous market sell-off. Amid widespread fear in financial markets throughout the world, the price of Bitcoin plummeted from almost $8,000 to less than $4,000 in a matter of days. The S&P 500 volatility index spiked during this time, suggesting that investors were quite scared, and the bitcoin market followed suit.
The cryptocurrency market experienced major upheavals from 12 March to 1 April 2020, mirroring the movements of more conventional assets. But by April, digital assets were regaining their value, and market synchronization was starting to fade, Next big cryptocurrency, thus the market was on the mend. Cryptos’ sensitivity to market fluctuations was brought to light by the COVID-19 crisis, which also cast doubt on their usefulness as a hedge.
4. A Series of Record-Highs in 2021
Thanks to institutional investments and widespread acceptance by corporations like Tesla, cryptocurrencies had record-breaking growth in 2021, with Bitcoin hitting over $68,000 in November. Contributing to the growth of decentralized finance (DeFi) and non-fungible tokens (NFTs), Ethereum also reached approximately $4,800. A rise in interest in the cryptocurrency market as a whole led to new highs for other altcoins, such as Binance Coin, Cardano, and Solana.
Read More: Top 3 Meme Coins to Watch During a Dip
Cryptos’ meteoric rise has lent credence to the idea that they can be a good investment. Institutional and individual investors alike took notice of the cryptocurrency sector in November 2021, Top 8 cryptocurrency events today, when its total valuation soared above $3 trillion. Several factors have shaped the trajectory of Bitcoin, including widespread use, investments from large institutions, and new use cases such as DeFi and NFTs.
5. The Arrival of NFTs and the Rise of DeFi in 2021
With a total value of over $100 billion secured in DeFi protocols, Decentralised Finance (DeFi) had phenomenal growth in 2021. DeFi exemplifies the potential of blockchain technology to revolutionize traditional finance by providing lending, borrowing, and trading services directly to users, eliminating middlemen, and making financial institutions more accessible and transparent.
Digital art and collectibles generated a lot of interest and investment in non-fungible tokens (NFTs), which also saw a boom in popularity. Whether it’s a piece of art or a piece of virtual real estate, NFTs are one-of-a-kind digital assets kept on a blockchain. Their meteoric rise demonstrated how blockchain technology might give rise to novel kinds of digital ownership and value.
6. Institutional Adoption in 2021
The market for cryptocurrencies had a dramatic increase in institutional acceptance in 2021, which revolutionized digital assets. Under CEO Michael Saylor’s guidance, MicroStrategy bought more than 120,000 bitcoins, establishing Bitcoin as a hedge against inflation. Tesla’s $1.5 billion Bitcoin investment added credibility to cryptocurrencies, but environmental worries caused the company to shelve its intentions to accept Bitcoin as payment for vehicles.
Cryptocurrencies were also accepted by payment processors and financial institutions. While Visa experimented with USDC settlements and formed partnerships with crypto companies for payments. PayPal lets users purchase, sell, and keep cryptocurrencies. Institutional investors such as NYDIG and Fidelity drove the meteoric rise of crypto-focused investment funds. Which saw their assets under management soar from $36.25 billion in January to $59.6 billion by October. The eventual recognition of cryptocurrencies as genuine financial products was signaled by regulatory events, one of which was the establishment of futures exchange-traded funds (ETFs).
7. Earth’s Subsidence in 2022
When the Terra ecosystem crashed in 2022, it exposed major vulnerabilities in the stablecoin market. The algorithmic stability of the price of Terra’s native token, LUNA. As well as the dollar-pegged stablecoin, UST, was maintained using an intelligent contract-based algorithm. Terra is a blockchain system that uses stablecoins. Arbitrage trading was made possible by this method, allowing users to swap LUNA for UST at a 1:1 ratio. Trouble started, though, when an anonymous wallet emptied UST valued at more than $500 million. Because of this debugging occurrence, the Luna Foundation Guard tried and failed to stabilize UST by using all of its Bitcoin reserves.
8. Unveiling the Ethereum ETF in 2024
Potentially game-changing developments in the cryptocurrency market may occur in 2024 when Ethereum ETFs are introduced. With the SEC’s blessing, Ether would be more accessible to institutional investors. Which may lead to a surge in both demand and price. Analysts anticipate new all-time highs for Bitcoin and Ether. Which have already gained 67% and 60%, respectively, in 2024. This increased institutional usage could lead to a bullish mood.
There may be much-needed regulatory clarification for the cryptocurrency market once the SEC rules on Ethereum ETFs. Although complete approval is highly improbable, encouraging signals have the potential to propel the market forward. One notable trend in the exchange-traded fund (ETF) industry is the possibility of new crypto-focused ETFs. Such as a spot Bitcoin ETF, being approved once Ethereum ETFs are.
Simply Put
The occurrences mentioned above are far from the only ones that have occurred throughout the history of cryptocurrencies. Nevertheless, the business has been irrevocably transformed by these eight major crypto events. Now that the fourth Bitcoin halving event has occurred the price of BTC is expected. To rise by the end of 2024, many more noteworthy events will impact the crypto industry today. Keep watching!
Further Read: Coinrexa