Fri, April 26, 2024 at 20:34

• 

  Joy

  • Hey Annie!

  • Did you hear about the recent Bitcoin halving?

  • It's been a wild ride for miners, especially for Riot Platforms (NASDAQ: RIOT).

  • They saw a whopping 36.3% jump this week!😲

  • 
• Annie

  • Wow, that's a big jump!😮 But I thought the halving would negatively affect miners because it cuts their revenue in half?

  
• 

  Joy

  • That's a common misconception, Annie.

  • While it's true that the block reward is cut nearly in half, this could actually lead to fewer competitors in the market.

  • Miners with low margins might be forced out, leaving stronger companies to take what's left.

  • It's like a survival of the fittest!💪

• Annie

  • I see...

  • So, it's not all doom and gloom then.

  • But what about the Bitcoin price?

  • I heard it's been down recently.

  
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• 

  Joy

  • You're right, Annie.

  • Bitcoin is down 0.8% over the past week.

  • But remember, Bitcoin goes through a halving about every four years, and in the past, it's coincided with a sharp increase in price.

  • So, we might see a price increase soon!📈

  • 
• Annie

  • That sounds promising!

  • But isn't Bitcoin mining getting more expensive?

  • I mean with all the energy and computing power it requires...

  
• 

  Joy

  • Absolutely, Annie.

  • It now takes hundreds of millions of dollars in investment to make a business out of Bitcoin mining.

  • The competition for computing power is only going to get stronger, and the falling revenue potential for these companies will make it harder to make money.

  • It's a tough game!💻

• Annie

  • Hmm...

  • So, is this good news or bad news for the market?

  
• 

  Joy

  • Well, it's a bit of a mixed bag, Annie.

  • On one hand, the increased market share could be positive for miners.

  • But on the other hand, they need to make money on the spread between their costs and the price of Bitcoin.

  • And if Bitcoin's price continues to drop, that could be bad news.😕

• Annie

  • I see...

  • So, should I invest in Riot Platforms now?

  
• 

  Joy

  • Well, according to The Motley Fool Stock Advisor analyst team, Riot Platforms didn't make it to their top 10 stocks for investors to buy now.

  • So, you might want to consider other options.

  • Always remember to do your own research before investing!💡

• Annie

  • Got it!

  • Thanks for the info, Joy.

  • You always make these complex topics easy to understand!😊

  
• 

  Joy

  • To sum up, this article is considered a 😱Bearish for investors!!