Cryptocurrencies are setting new records!

Publication date: 12 Nov 2021

In November 2021, the market capitalization of Bitcoin, Ethereum and other cryptocurrencies exceeded $3 trillion. In just one year, the cryptocurrency market capitalization has increased by 400%, according to data from the exchange CoinGecko.

As of November 8:

• The total cryptocurrency market capitalization is $3.02 trillion;
• Bitcoin’s market share of $1.239 trillion;
• Ethereum’s share of $560 billion;
• Tether’s share – $73 billion;
• Cardano’s share – $65 billion.

“Joke” cryptocurrencies such as Dogecoin and Shiba Inu have reached capitalization of $36.7bn and $31.2bn respectively.

• What are “joke” cryptocurrencies (“meme coins”)? Most cryptocurrencies are based on some feature that makes them unique and attracts the attention of buyers. Usually, this is technology (high level of anonymity, transaction terms, mining features, etc.), but in the case of “joke” cryptocurrencies this feature is a fun idea, image, a reference to a joke. For example, Dogecoin (from 2013) was originally a parody of bitcoin, and it was based on a meme with a dog.

On November 9, 2021, Bitcoin once again hit an all-time high, reaching $68,500 for the first time. According to CoinMarketCap, the bitcoin price rose by 4.82% overnight.

Analysts predict that the value of the cryptocurrency is capable of crossing the threshold of 100 thousand dollars. However, they specify that such growth will be followed by a correction, as many investors will record profits.

Cryptocurrency outlook

In Russia, the Ministry of Economic Development and several other agencies have advocated the legalization of cryptocurrency mining by recognizing it as a business activity.  This would allow mining to be taxed under the statutory procedure. Officials agree with the idea, as despite the absence of a ban on mining, the uncertainty of its status makes it impossible to tax this activity.

At the same time, the authorities plan to get to information on crypto-owners by giving security forces the right to obtain information from operators of digital assets.  Such dramatic changes in powers are explained by the FSB officers by the reform in the anti-corruption legislation, because now the data on digital assets must be displayed in the income statements.

It will be recalled that at present it is not forbidden to own digital coins in Russia, but it is not possible to conduct financial transactions with them. At the same time, since the beginning of 2021, cryptocurrency is officially considered to be property.