The cryptocurrency market is spinning today as Bitcoin bounces back above $ 40,000 and ethereum’s ether is at an all-time high.
Bitcoin is now trading just over $ 40,000 per single coin, up more than 16% in the past seven days alone. The digital currency is recovering from a market slump in late December / early January, which dropped to a low of $ 31,000. Such massive drops are not uncommon in the extremely volatile cryptocurrency market.
Bitcoin is a digital currency created by “mining” a blockchain that rewards users who solve complex equations. While some liken it to the tulip madness and other speculative investments, it has attracted countless world-class investors and financial institutions, especially 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 flood that lifts other boats. Such alt coins as Ethereum’s Ether (now $ 1700) and Litecoin ($ 157) are also at or near record levels, boosting the overall markets. Other coins are also on the rise, creating a red-hot market in early 2021.
Overall, a robust cryptocurrency market means good things for new start-up entertainment companies, as investors inundated with extra cash as their cryptocurrency rises are more likely to support disruptive new businesses.