Venture capital funds have invested about $30 billion into crypto, breaking all previous records. It is approximately four times the previous high of around $8 billion in 2018, or in the following year Bitcoin gained more than 1,300%, according to data collected by PitchBook Data Inc.
Several famous personalities have also ventured into the crypto space, with the most recent being the former U.S First Lady launching her first-ever NFT on the Solana Blockchain. Michael Jordan, a retired basketball player also invested some undisclosed amount into Dapper Labs, an NFT platform.
Experts believe that is the FOMO or fear of missing out that has become the driving factor behind this investing frenzy. There were so many developments in the crypto space like Web 3.0, decentralized gaming, decentralized finance, NFTs, decentralized social media, etc that investors fear if they don’t invest now, they will not be at par with the recent trends. “We’ve moved beyond just digital gold. We’ve got financial services, art, gaming as a subcategory of non-fungible tokens (NFTs), Web 3.0, decentralized social media, play-to-earn — all of that made investors think ‘we don’t have enough exposure,’” Bloomberg quoted Spencer Bogart, a general partner at investment venture firm Blockchain Capital.
2021 has been proved to be the year of many crypto debuts. El Salvador became the first country to adopt Bitcoin as a legal tender and had gone even further to create a Bitcoin city that was to be backed by Bitcoin bonds. Barbados launched its virtual embassy namely Decentraland(MANA) this year and thus became the first country in doing so.
Indians hold Rs 400 Billion in digital crypto assets, CNBC quoted a report prepared by blockchain data platform, Chainalysis.
Meanwhile, the Reserve Bank of India Governor Shaktikanta Das has expressed deep concerns regarding the ongoing crypto boom. He said that they are closely monitoring the crypto space as it may pose a threat to India’s financial stability. Indian Government is working closely for a crypto regulatory bill which was supposed to be introduced in the winter session of the Parliament but now deferred till the next session budget.
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