- Bitcoin references on Twitter have risen 350% in the past year, and used ATMs have reached 33,850, up 142% in 2021.
- Venture capital firms are also flying into the sector, investing $ 25 billion in BTC companies, seven times more than the $ 3.5 billion they invested last year.
It’s no secret that it was a good year for Bitcoin. The cryptocurrency set new records, broke them, and set new ones as the world awoke to the huge opportunity that BTC offers. And there are statistics to prove it, along with the price, as the number of Bitcoin quotes on Twitter increased 350% and venture capital financing for BTC companies doubled.
Twitter is a very important way of interacting around the world, and most world leaders use it in politics, business, science and technology to reach its followers. Former US President Donald Trump was one of the first to recognize the power of Twitter, followed by others.
For Bitcoin, Twitter is crucial now.
– Jameson Lopp (@lopp) December 26, 2021
At the beginning of the year, it was Twitter that influenced the price action. Elon Musk was the king of the market movement through the social media platform, but he was also taken over by others. And not just Bitcoin. Other cryptocurrencies like Dogecoin came to the fore through Twitter and created a legion of fans. Shiba Inu Twitter also created and became the highest earning coin of the year, earning tens of millions of percent.
As the graph below shows, some of the most popular talking points on Twitter revolved around Elon Musk and his electric vehicle giant Tesla. Tesla’s purchase of $ 1.5 billion worth of BTC, acceptance of BTC payments, and suspension of such payments were at the top of the list. El Salvador was also a big issue, with its Bitcoin law coming into force this year. Taproot activation and the fall in the price of BTC also made the news.
Venture capital in Bitcoin rises 700%
This year, Bitcoin has reached prices that many could only have imagined a few years ago, when the crypto winter began. With its price increase, a lot of venture capital money has flowed into the ecosystem.
In 2013, venture capital firms injected only $ 23 million into Bitcoin ventures. Going forward to 2021, $ 25 billion has been invested in these companies. This figure is 7 times higher than last year, when funding was $ 3,500 million.
Crypto industry venture capital funding:
2012: $ 23M
2013: $ 120M
2014: $ 368M
2015: $ 850M
2016: $ 850M
2017: $ 1,200M
2018: $ 6,000M
2019: $ 3,000M
2020: $ 3,500M
2021: $ 25,000M
– Jameson Lopp (@lopp) December 27, 2021
U.S. venture capital firms controlled this area, according to data from PitchBook. Coinbase Ventures was one of the most active firms and in the third quarter of 2021, no more VCs made deals. And as one executive has revealed, the firm invests more in supporting the ecosystem than in making a profit.
Speaking to the New York Times, Shan Aggarwal, head of Coinbase Ventures, said:
Profitability is not the main metric by which we measure the success of Coinbase Ventures. We see a world where the best start-ups of the future will be built on the web3 blockchain infrastructure. That is the future that we are building.
But not everyone is willing to venture into venture capital firms in cryptocurrencies. Cardano founder Charles Hoskinson believes these companies go against the spirit of decentralization on which crypto was built. Cardano has not taken money from any venture capital firm since its inception.