Why Are Tech Companies Benefiting from the Crypto Boom?

While the whole world is following Bitcoin price fluctuations, some tech firms count on even larger profits. The latest success of The9, Riot Blockchain, and Canaan is discussed in the LoginCasino cryptocurrency news rubric in simple terms, as usual.

The volatile nature of cryptocurrencies leads to significant price fluctuations, which are especially huge when some rule-changing news appears. Thus, the latest financial stimulus package presented by Joe Biden caused the rise of Bitcoin again. However, while BTC is showing some 2% change during a short period, the stocks of the companies like The9, Riot Blockchain, and Canaan may jump up to 30%.

This phenomenon is tightly related to the essence of cryptocurrencies. Thus, they all are the manufacturers of mining equipment. The economic law that lies in the roots of the tech firms' growth is simple enough: more expensive BTC leads to an increase in mining efficiency, so the appropriate equipment manufacturers benefit.

What is interesting, it can easily become a new type of earning on cryptocurrencies. If to take the last half-year period, Bitcoin rose by about 450% compared to the S&P 500 Level index (which showed an almost 18% increase). At the same time, the shares of the regarded firms rose by the following rates:

  • Canaan by 1700%
  • The9 by 1100%
  • Riot Blockchain by 2160%

However, the aggregate chart of all those indexes shows even bigger volatility of tech firms' stocks. At the same time, they are looking way more perspective in terms of investing in the right moment. That is the real power cryptocurrencies are holding now –they can influence some tech companies' stock prices.

Read more: The pitfalls of making Ethereum price prediction in 2021

Read more: Is it possible to invest in blockchain stocks, and how?

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