Bitcoin is now trading slightly over $40,000 per single coin, up more than 16% in the last seven days alone. The digital currency is recovering from a market dip in late December/early January that saw it plunge to as low as $31,000. Such titanic drops are not unusual in the extremely volatile cryptocurrency market.
Bitcoin is a digital currency that is created by “mining” a blockchain, which rewards users who solve complex equations. Although some liken it to the tulip craze and other speculative investments, it has attracted numerous world class investors and financial institutions, particularly in the last 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. Such alt-coins as Ethereum’s Ether (now at $1700), and Litecoin ($157) are also at or near record levels, boosting the overall markets. Other coins are also on the rise, making for a red-hot market early into 2021.
Overall, a robust cryptocurrency market means good things for new entertainment start-ups, as investors that are flush with extra cash as their cryptos holdings rise are more likely to back disruptive new companies.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.