Bitcoin Mining Fundamentals for Investors
The analogy between mining precious metals and digital proof-of-work assets is sometimes misleading. However, from an investor’s perspective, it has certain merits. Both traditional mining and crypto mining are ways of gaining exposure to the asset extracted but are shaped by additional physical and economic factors. This article will give an overview of these externalities while largely abstracting from what drives the price action of BTC itself.
The analogy between mining precious metals and digital proof-of-work assets is sometimes misleading. However, from an investor’s perspective, it has certain merits. Both traditional mining and crypto mining are ways of gaining exposure to the asset extracted but are shaped by additional physical and economic factors. This article will give an overview of these externalities while largely abstracting from what drives the price action of BTC itself.
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