The cryptocurrency market is on the move today as Bitcoin crosses the $ 40,000 mark and the ether of Ethereum is at an all-time high.
Bitcoin is now trading just over $ 40,000 per single coin, up more than 16% in the last seven days alone. The digital currency is recovering from a market slump in late December / early January that dropped it to just $ 31,000. Such drops of titanium are not uncommon in the extremely volatile cryptocurrency market.
Bitcoin is a digital currency that is created by “mining” a blockchain and rewards users who solve complex equations. Though some compare it to the tulip craze and other speculative investments, it has drawn numerous top-tier investors and financial institutions, particularly in the past six months.
Only 21 million bitcoin will ever exist in the complex system, making it a finite resource.
The Bitcoin boom is a tide that is lifting other boats. Altcoins like Ethereum’s Ether (now at $ 1700) and Litecoin ($ 157) are also at or near record levels, which is boosting overall markets. Other coins are on the rise too, making for a glowing market in early 2021.
Overall, a resilient cryptocurrency market means good things for new entertainment startups, as investors who are flushed with additional cash as crypto holdings grow are more likely to support disruptive new businesses.