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Originally Posted by tonoy
Have to disagree there about miners needing to sell their bitcoins. In fact most miners are now holding their bitcoins. Even after every bitcoin is mined you’ll need the miners for the network. The idea is simple as mining gets harder, price of bitcoin will rise further which itself should make mining still profitable. 5+ year of being vested in miners might not be such a bad idea if you fundamentally think bitcoin price will keep going up.
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Can you back up this claim that miners are not selling their mined bitcoin for revenue? So how are they making money? What percentage of revenue do they make via network fees as opposed to selling coins in open market? If they keep majority of their mined coin, then i will buy your argument that it can be a good loong term investment.
With rising btc price, the miners will still be profitable, that is not the argument -ratheer whether their stock price can be justified by the margin of their profit.
Holding the coin itself - u worry about nothing else but supply and demand for the coin. For RIOT, it's a company that you have to evaluate just like any other publically traded company on the planet.
For context:
Btc gained 14,000 % last 5 years.
Riot gained 1,900 % in that time frame.
that is a big disconnect eventhough the direction maybe the same.
Boviously going forward the rate of return won't be like this. BTC will eventually flat out and stablizine at certain level. With each halving, the mining cost would just keep rising and eventually will falter at some time in future. There will be an inflection point where the miner will be at maximum profit margin for btc mining... only thing is companies will eventually venture to other currencies as this simple fact about btc is realized.
Good luck. And I own both. And i have significantly upped my crypto hold. But i don't worry about btc or eth. But riot, I went in and out atleast 5x last month.