As the year draws to a close, not only is the US stock market approaching record highs, but a vaunted alternative to the existing financial system is also growing.
Bitcoin is now trading above $ 29,000 per currency, an increase of more than 24% in just the past seven days. It has already surpassed its previous record of $ 20,000 and is likely to reach the $ 30,000 mark by the end of the weekend if it continues to trend in the current direction.
Bitcoin is a digital currency created by the “mining” of a blockchain, which rewards users who solve complex equations. While some liken it to the tulip craze and other speculative investments, it has attracted numerous investors and world-class financial institutions, especially in the past six months.
Only 21 million Bitcoins will exist in the complex system, making it a finite resource.
The Bitcoin boom is a tide that is raising other boats. Alternative currencies like Ethereum’s Ether (now at $ 745) and Litecoin ($ 135) are also at record or close levels, boosting markets in general. Other currencies are also on the rise, making it a bull market approaching 2021.
The only negative note is found in the third largest digital currency by market capitalization. The Securities and Exchange Commission sued Ripple Labs, the company that issues the XRP. The complaint accuses XRP supporters of conducting an illegal bond issue and personally profiting from the effort. As a result, the price dropped and many crypto exchanges stopped trading on it.
But in general, a robust cryptocurrency market means good things for new entertainment companies, as investors who are full of extra money as their cryptocurrencies increase are more likely to support innovative new companies.