Bitcoin Mining Stocks Have Exploded | Time To Buy? (MARA, RIOT, HUTMF, HVBTF, CLSK)

Bitcoin mining stocks have been on an absolute tear over the past few weeks as cryptocurrency interest has picked up among the investing community. Stocks ike Riot Blockchain and Mara Patent Group have rallied hundreds of percent and now it's time to decide if it's too late to get in on the action for some mega gains.

As stated in my past video on Bitcoin I'm extremely bullish for Bitcoin for 2021 and was looking for some leveraged derivative plays to capture the bitcoin gains. I bought some Bitcoin 100k strike price call options for Dec '21, but I have found another strategy to capture these gains.

Bitcoin mining stocks have a very simple business model comprised entirely of fixed costs. These companies also have very few employees and in the case of the nearly 1 Billion dollar market cap Riot Blockchain they have 6 full time employees. These companies' profits are entirely depend entirely on the price of Bitcoin. As the bitcoin price increases, these companies will become more and more profitable, leading to my main bull case of Bitcoin gaining tons of market value per coin in 2021, which will exponentially increase the profits of these companies.

Bitcoin is a digital currency created in January 2009 following the housing market crash. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.1 The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.

There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of hundreds of other virtual currencies collectively referred to as Altcoins.

KEY TAKEAWAYS
Launched in 2009, Bitcoin is the world's largest cryptocurrency by market cap.2
Unlike fiat currency, Bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system known as a blockchain.1
Bitcoin's history as a store of value has been turbulent; the cryptocurrency skyrocketed up to roughly $20,000 per coin in 2017, but as of two years later, is currency trading for less than half of that.3
As the earliest cryptocurrency to meet widespread popularity and success, Bitcoin has inspired a host of other projects in the blockchain space.
Understanding Bitcoin
Bitcoin is a collection of computers, or nodes, that all run Bitcoin's code and store its blockchain. A blockchain can be thought of as a collection of blocks. In each block is a collection of transactions. Because all these computers running the blockchain have the same list of blocks and transactions and can transparently see these new blocks being filled with new Bitcoin transactions, no one can cheat the system. Anyone, whether they run a Bitcoin "node" or not, can see these transactions occurring live. In order to achieve a nefarious act, a bad actor would need to operate 51% of the computing power that makes up Bitcoin. Bitcoin has around 47,000 nodes as of May 2020 and this number is growing, making such an attack quite unlikely.4

In the event that an attack was to happen, the Bitcoin nodes, or the people who take part in the Bitcoin network with their computer, would likely fork to a new blockchain making the effort the bad actor put forth to achieve the attack a waste.


Bitcoin is a type of cryptocurrency. Balances of Bitcoin tokens are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Bitcoin keys should not be confused with a Bitcoin wallet, which is a physical or digital device which facilitates the trading of Bitcoin and allows users to track ownership of coins. The term "wallet" is a bit misleading, as Bitcoin's decentralized nature means that it is never stored "in" a wallet, but rather decentrally on a blockchain.

#riot #mara #hutmf

- Get 2 Free Stocks With WeBull valued up to $1400
https://act.webull.com/kol-us/share.html?hl=en&inviteCode=EzwPAFtf5SzU