Biggest Crypto Wars of 2021

Highlights 

• Without doubt, cryptocurrency’s biggest adversary remains regulation, whether it’s in the US, Europe or Asia
• In November, the Biden administration passed a US$1.2 trillion infrastructure bill that included some changes to taxes crypto investors are required to pay on capital gains
• Dogecoin’s success has spawned a pack of dog-inspired tokens, the most prominent of which is Shiba Inu, inspired by the Japanese dog breed of the same name

They say there’s no conflict without drama and there’s been plenty of drama in the crypto space this year. Between the world’s premier crypto, Bitcoin, going through a rollercoaster of dizzying highs to heartbreaking lows and governments worldwide declaring regulation wars on crypto, there’s rarely been a dull moment for investors, traders and owners of digital currencies.

Here are some of the biggest battles that have been waged in the crypto space this year.

Bitcoin vs China

Without doubt, cryptocurrency’s biggest adversary remains regulation, whether it’s in the US, Europe or Asia. It should come as no surprise that the biggest proponent for market regulation is the place where the free market is looked upon suspiciously.

Hence, China has been one of the more vehement actors when it has come to regulation within the crypto space.

In April, the Chinese government cracked down on crypto trading and Bitcoin mining, shutting down several mines across the country.

Then in September, China really cracked down on the space when the People’s Bank of China (PBOC) stated cryptocurrency transactions or mining had been made completely prohibited by law.

While China had been taking steps to regulate crypto since 2013, the move in September was the most definitive step yet.  

Crypto vs USA

While the US is obviously more open to the concept of free market than China, that hasn’t stopped traditional financial institutions worrying over the emergence of Bitcoin and whether that could undermine the US dollar.

In November, the Biden administration passed a US$1.2 trillion infrastructure bill that included some changes to taxes crypto investors are required to pay on capital gains.

The bill’s passing has reportedly spooked investors who are now required to track their activities. Previously, investors could potentially convert crypto to cash without prompting authorities. This bill changes that.

It’s probably no coincidence that around the same time as the bill’s passing Bitcoin’s value began to decline from record highs set earlier in November.

Dogecoin vs Shiba Inu

In a market which throws up its fair share of surprises, one of the more surprising surprises this year has been the rise of the memecoins. In particular, the rise of Dogecoin and its spin-off Shiba Inu.

Dogecoin is one of the original memecoins, launched in 2013 intended as a joke to satirise other more established cryptos, like Bitcoin. It went largely under the radar until this year when celebrities like Tesla Billionaire Elon Musk began praising the token (ironically or not) in Twitter. This took Dogecoin from US$0.005 to its all time high of US$0.76 in May.

It gained so much support that it pushed its way into the top ten cryptos by market capitalisation. It’s now raked 12, priced at US$0.1727.

Dogecoin’s success has spawned a pack of dog-inspired tokens, the most prominent of which is Shiba Inu, inspired by the Japanese dog breed of the same name.

Shiba Inu, created in late 2020, dubs itself the “Dogecoin killer” and has outperformed Dogecoin for the latter half of this year. It reached its all-time high in late October and even pushed its way into the top ten cryptos by market cap. It’s now ranked 13 and is priced at US$0.00003368.

Moving into 2022

Next year will likely see cryptocurrency move further into the mainstream as businesses and governments look to capitalise on what it has to offer.

Combine this with the advancement of blockchain technology and the shift to Web 3.0, 2022 is sure to be a big year for crypto.

As crypto grows, so too will its obstacles and adversaries. Like they say, you can’t make an omelette without breaking a few eggs