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Miners add third party risk
The vast majority of bitcoin has already been mined. The halving is coming shortly which will reduce circulation. Buy BTC directly and throw it into cold storage like “ledger”. Keep your coins off the exchange. I lost 56K on coins I left on the voyager exchange before they went bankrupt, learn from my mistakes. I’m back up to 4 bitcoins at 15K each. I’ve already made back my lost money on voyager. As the saying goes. NOT YOUR KEYS, NOT YOUR COINS.
RPM1: Thank you for your response. Could you pls elaborate the „so what“ of your first 2 sentences in the 1st comment when considering (not) investing in miners? Any additional thoughts about buying Microstrategy instead of BTC? Reason Inam asking is that I find it much easier to buy stocks than coins while simultaneously participating from a potential bull run.
Miners have headwinds as the halving comes up. Now, the cost of mining bitcoin becomes doubly expensive, so to maintain the same operating margins, BTC has to move up by 2x. Which could likely happen, but how long would it take?
I trade MARA quite a bit because it has large swings, but as an investment I'm just not so sure about it.
I checked out Mara and it looked good and got the nice 14% pop last week. The miners are riskier than the coin itself for obvious reasons. They aren't all equally efficient. I understand Bitcoin will trade on the exchange with an ETF reflecting the spot price next year at some point. That should increase interest in Bitcoin. Mine are kept at coinbase and it's solid as far as I know
There are lots of other risks into buying miners(technology, energy, …). Look at RIOT stick compared to the price of BTC. There is not a strong correlation.
Yeah, was wondering about the correlation as well. Thank you, much appreciated
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