![]() ![]() ![]() This halvening appears likely to have a reasonably similar effect in 2021, and what we are seeing this year is part of it. The halvening of the Bitcoin block subsidy happens about every four years and was in play when Bitcoin broke out in 2017, with the prior halvening happening in 2016. The theory of investing in Bitcoin in 2020 anticipates a frenzied demand for Bitcoin will exist in 2021 that will have a similar effect upon prices to that which did occur in 2017. Bitcoin's structure halved the output earlier this year, dramatically reducing the flow of supply of newly available coins, while increasing the costs associated with mining. Bitcoin is outperforming in 2020 for numerous reasons. The Catalyst Is The Halveningīitcoin is moving up, and miners like MARA and RIOT are likely to follow, at least for a while. ![]() Much of this would be due to such theoretical future dilution occurring into countervailing Bitcoin appreciation that would be likely to create surging demand for market-approved Bitcoin investments. It is also quite possible that these companies may get elevated to the rarified echelon of public companies with the capacity to appreciate when issuing equity. Moreover, MARA has the potential to outperform, due to leverage from dollar denominated debt. While this future appeared more probable for RIOT, it now appears as though MARA shall match or beat RIOT's relative reaction to the likely Bitcoin price surge within 2021. I now believe that both Riot and Marathon Patent Group ( NASDAQ: MARA) have established themselves as the two main domestic Bitcoin miner equities as well as the two entities within the sector that are most likely to become mid caps within the next year. That theory has since proven reasonably accurate, with both Bitcoin and Riot Blockchain breaking out. This summer, I proposed that Bitcoin miners were likely to appreciate along with Bitcoin, and that Riot Blockchain ( RIOT) was likely to appreciate in reaction to a probable Bitcoin breakout. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |