Riot Platforms primary business is mining Bitcoin, but bitcoin is programmed to award less and less bitcoin to miners. Around april next year the protocol will automatically halve the amount of Bitcoin that can be mined from one day to the other, its called a halving. This would require the exchange rate of BTC to double until then if miners are to remain profitable. This will most likely not happen to how the serious the FED is tigthening and other countries seem to follow. The money printer is off, in other terms?
This is why the next halving could mark a turning point for bitcoin hashrate. It may peak, and then start dropping consistently for the first time in history. This will force investors to reasses their exposure to bitcoin, which can further drop the exchange rate which will further cause miners to become unprofitable! A downward spiral for sure in that case.
So maybe shorting Riot Platforms long term is a good idea, but lets see.
This is why the next halving could mark a turning point for bitcoin hashrate. It may peak, and then start dropping consistently for the first time in history. This will force investors to reasses their exposure to bitcoin, which can further drop the exchange rate which will further cause miners to become unprofitable! A downward spiral for sure in that case.
So maybe shorting Riot Platforms long term is a good idea, but lets see.
Comment:
Very cool that Tradingview has a chart of bitcoin hashrate (Its clearly in a bubble?)
