4 Crypto Mining Stocks Positioned To Outperform Bitcoin
Cryptocurrency mining companies are increasing their hashrate
Investors have been scooping up bitcoins. Their growing interest in acquiring it has caused the price of a bitcoin to increase from $7,200 at the start of 2020 to over $30,000 in 2021.
Given that miners earn bitcoins for performing the proof-of-work required to process transactions on the Bitcoin blockchain, they have been exceedingly profitable. (The higher transaction fees the blockchain charges during periods of congestion have also added to their profits.)
A December 28th tweet from glassnode noted that bitcoin miners recently earned $1 million per hour; a noteworthy amount since miners are now rewarded half as many bitcoins per block, compared to the last time (July 2019) they earned an equivalent hourly amount.
Glossnodes’ tweet provides evidence that mining bitcoin can be profitable. The cryptocurrency mining process, however, can also be expensive and may only occasionally result in a reward. The economic realities of cryptocurrency mining give some would-be entrants pause.
