3 Costs Cryptocurrency Miners Need to Know, and the 1 Wildcard That Can Change Everything

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dizzleBEE16
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3 Costs Cryptocurrency Miners Need to Know, and the 1 Wildcard That Can Change Everything

Sun May 20, 2018 3:25 pm

Put simply, cryptocurrencies are doing things Wall Street and investors have never witnessed before. Last year, the aggregate value of all virtual currencies combined soared almost $600 billion to end the year around $613 billion. The aggregate gain of more than 3,300% represents possibly the greatest single-year return for any asset -- and there's a very good chance we won't see anything like it again, at least during our lifetime.

This surge higher in cryptocurrencies has spawned numerous ways for enthusiasts to make money. Obviously, buying and holding virtual currencies (known as "hodling" among the crypto community) for long periods of time has worked wonders for investors. Bitcoin, which had once traded below $1 per token, surged to around $20,000 per coin in December 2017. Meanwhile, Ethereum and Ripple, which are second and third, respectively, in market cap behind bitcoin, surged by 9,383% and 35,564%, respectively, last year alone.

Another potentially profitable venture has been buying into publicly traded stocks that have exposure to the cryptocurrency market. For example, the Bitcoin Investment Trust owns a relatively fixed amount of bitcoin in its portfolio, allowing investors a roundabout way of loosely tracking the performance of bitcoin. I say "loosely" because the Bitcoin Investment Trust has often been valued at a 25% to 100% premium over the net value of its held tokens.

https://www.fool.com/investing/2018/05/ ... d-the.aspx

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