The rise of Ethereum, Bitcoin's political strength, and the rise of bitcoin whales' assets. What were the three-quarters of 2021 memorable?

At the beginning of November, crypto started buying again around the world amid rising inflationary expectations. The behavior of major market investors suggests that investing in bitcoin can once again become the main option for capital preservation. JPMorgan analysts confirm this.

They believe that bitcoin is a safeguard against inflation. This is due to the regular two-fold reduction in bitcoin mining fees. The software code reduces the supply growth rate by 50% every four years, which puts the cryptocurrency's monetary policy at odds with decades of money printing by the Federal Reserve.

However, according to Chainalysis, bitcoin needs to expand its presence in the crypto subsectors, including Web 3 and decentralized finance. This will allow the most popular cryptocurrency to remain relevant compared to Ethereum in the long run.

El Salvador is using the profits from the rise in BTC to build 20 new schools. Funds from the "surplus" of the so-called Bitcoin Implementation Trust (FIDEBITCÓIN) are yielding results, and the president of the Republic Naib Buquele announced the start of the construction of the first 20 Bitcoin schools, also modernized and equipped with technology. He also said that other projects will be implemented for the benefit of the people, without spending a single Salvadoran tax dollar. All profits will be used from the results of the implementation of the law, which was created by ignoring the opposition.

Thus, almost two months after the official adoption of bitcoin, the people of El Salvador are experiencing clear benefits: no commission, construction of a hospital, 20 schools, and so on.

The mayor of Miami will get a bitcoin paycheck. The mayor of an American city and a big fan of crypto recently began positioning himself as one of the few U.S. political leaders to receive a paycheck in bitcoins. According to the Miami Herald, the mayor of Miami receives a salary of $187,500.

The Securities and Exchange Commission was denied a monopoly on the Stablecoins' regulation. On November 1, the U.S. President's Working Group on Financial Markets (PWG) released its long-awaited report and policy recommendations on stablecoins. The document focuses on the prudential risks that "payment stablecoins" can pose to users.

At present, the use of stabelcoins is severely limited by the simplification of digital asset transactions. However, the report shows that stabelcoins as an asset class could become widespread in the retail industry. Such a move would require Congress to pass global federal prudential regulation shortly.

The prospect of the SEC taking a leading role in stablecoins' regulating made some players in the crypto space worried.

"Industry participants likely see the SEC's desire to take a position in this area simply as another example of the SEC's overreach in the cryptocurrency space and are concerned that the SEC will regulate stablecoin through enforcement rather than the rule, as some belief is done in other countries," commented C. Neil Gray, a partner at law firm Duane Morris.

In any case, for crypto market participants, any certainty is better than no certainty.

Thus, the positive status of cryptocurrency market pillars continues to strengthen, despite increasing attempts at regulation by government agencies. Bitcoin and its peers are considered good means of capital preservation.

At the same time, cryptocurrency is increasingly acquiring the status of an important financial instrument in the political arena. Countries are accelerating the process of adopting and implementing cryptocurrencies in social and financial processes. SEC seeks to assume the role of cryptocurrency regulator in the U.S., getting closer to stablecoin, but this does not confuse crypto investors much. The latter, on the contrary, activates to initiate a dialogue between crypto market representatives and the regulator.