Cryptocurrencies have become a favorite of the US technology sector as companies look to make money from them.
According to CoinMarketCap, which tracks the value of cryptocurrencies on a daily basis, the value has increased by nearly 400 percent in the past year.
In February, Facebook announced it would accept cryptocurrency as a payment method for its $20 billion acquisition of Instagram.
The move, however, drew criticism from some of the cryptocurrency’s most vocal proponents.
“There is a clear perception that Facebook is selling something for nothing, but this isn’t true,” said Matt Green, chief executive of the American Bitcoin Association, a nonprofit that advocates for the digital currency.
“If we had any doubt that Facebook was going to be a crypto-billionaire, the announcement of its purchase of Instagram is proof positive.”
In December, Amazon announced it had acquired a majority stake in BitPay, a San Francisco-based payment processor that makes cryptocurrency payments.
“We’re looking at creating a payment network for people who have used Bitcoin and Ethereum in the last 12 months,” said Mike Caldwell, a BitPay co-founder and CEO.
“We think it will be an amazing platform for businesses that want to accept crypto for their payment.”
Amazon also announced it was expanding its Bitcoin payments platform, launching a new service in partnership with Coinbase, another cryptocurrency wallet provider.
In March, it signed a memorandum of understanding with Coinbase for the company to provide services for its cryptocurrency wallet.
“When we think of the potential of this technology, there are many benefits,” said Caldwell.
“It’s easy to set up, it’s easy for consumers to get involved, and it’s an incredibly powerful platform.”
Some of the companies that have been using cryptocurrencies for payments have raised a lot of money.
For example, the e-commerce giant Walmart, which announced in May that it would start accepting cryptocurrencies as payment, has raised over $100 million in funding.
Meanwhile, a group of American hedge funds, including the Blackstone Group and BlackRock, have announced they will buy several large bitcoin mining farms and run them for cryptocurrency.
Blackstone recently announced that it had raised $2 billion in funding and will use the money to build a cryptocurrency mining machine factory in Nevada.
The fund is also investing in bitcoin exchanges, the investment firm said in a statement.
The investment firm also said that Blackstone is investing in several companies that are building crypto-mining farms, such as Bancor, CoinLab, Coinmama, and Crypto Miner.