CRYPTOCURRENCY MARKET IN 2021 AND 2022

Abstract

Digital/virtual currencies or cryptocurrencies are digital constructs that are not issued or guaranteed by a central bank or public authority and whose value is not backed up by the assets of a particular economy, but depends solely on supply and demand. Digital currencies are linked to a legally established currency and do not correspond to the legal status of currency or money; however, they are accepted by more and more people and companies, either for the ease of use, or for speculative reasons, because they are very volatile, either for illegal payments. In the years 2021 and 2022, cryptocurrencies proved to be digital assets with a pronounced economic potential, many cryptocurrencies saw rapid increases or falls, some countries banned cryptocurrencies, others allowed them to their citizens. Central banks - such as the American Reserve (Fed) and the European Central Bank (ECB) do not approve the activity of cryptocurrency trading platforms, and several countries, including India, Romania and Turkey, have banned the circulation of cryptocurrencies on their territory