China arrests over 1,100 suspects in crackdown on crypto-related money laundering | Reuters

The start of this year certainly kicked off in an exciting way with plenty of news around investment possibilities, starting off with the emergence of NFT on the Ethereum blockchain but have since fizzled out with the bubble bursting, and further opportunities that have also come from the growing retail trading space with the likes of GameStop and AMC making news throughout the year as the short squeeze has been a topic of discussion for the better part of half a year now. Crypto is often always a target for investors though for the potential promise of a high price and huge success, but is it worth the investment in 2021?

A potential for mainstream use – Whilst the crypto space was met with huge excitement when Tesla first announced that they had planned to be using bitcoin as a payment method for cars only for hopes to be dashed later on when it was revealed the company pulled out due to environmental concerns associated with the crypto, it doesn’t take away from the potential that it could find much wider use in the future – already being used for online gaming in particular with the likes of casinos at having a wider allowance for different currencies, if it can find a mainstream home to legitimize it more then crypto could certainly become a much stronger investment.

Volatility continues to be an issue, however – If you are investing in the crypto space, you’re likely already well aware of the volatility issues which may be a deterrence for some, and that had certainly been seen with the previous point with a large company pulling out seeing a huge dip in the price, and also for other coins as the meme coin Dogecoin saw a huge rise and subsequent fall for similar reasons. Much of the problem is that as the value goes up, investing becomes more difficult anyway, and with volatility being such a huge concern, it’s just another factor to put into the equation to see if it’s something that can work for you or something to turn you away.

Adjustments in the biggest market could unsettle things further – If all of the excitement around the start of the year got you interested, the news that the biggest mining market of China potentially making crypto a bit of a taboo could certainly hurt your interests. Making up over half of the entire bitcoin mining market, environmental concerns have caused China to adjust their own view of decentralized currencies which has led to the huge price drop seen recently, not good news if you’re looking to invest, and could certainly upset the status quo of whether or not investing in crypto is worthwhile for 2021.