Marathon digital stock investors don't need to lose sleep over Bitcoin halving event
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short-term news like Bitcoin (BTC-USD) SEC approval for halving and spot ETFs is important, but it's not the only thing to consider before investing. marathon digital (NASDAQ:Mara). Instead, think long-term and be prepared to hold marathon digital stocks through the ups and downs of the crypto market.
Yes, the Bitcoin halving event is currently the hottest topic in the cryptocurrency space, so we will discuss it. It is important to understand the implications of a future Bitcoin halving. Understand the benefits of Bitcoin before deciding to own Marathon Digital stock.
Will the marathon survive the halving?
To summarize, the Bitcoin halving is an event that occurs approximately once every four years, where the reward for mining Bitcoin is cut in half. This is done to reduce and control the circulating supply of Bitcoin.
The most recent Bitcoin halving event just occurred around the end of last week. This time, the reward for mining Bitcoin will be reduced from 6.25 tokens to 3.125 tokens.
At first glance, this sounds like a fatal blow to Bitcoin mining businesses like Marathon Digital. Don't be surprised to see alarming headlines in economic newspapers.flat wall street journal It suggested that crypto miners are scrambling for new ways to make money.
Marathon Digital is not scrambled. The data shows that Marathon Digital is increasing its Bitcoin mining pace, both in terms of Bitcoins generated and hashrate activated.
Clearly, Marathon Digital's management team is not losing sleep worrying about current and future Bitcoin halving events. The company recently acquired a 200-megawatt Bitcoin mining data center next to a wind farm. That sounds like confidence, not fear or worry about things going half-way.
If you like Bitcoin, you'll love Marathon Digital
In case you didn't get the gist of all this. Yes, Marathon Digital will survive for weeks and months after its halving. I mentioned that Marathon Digital stock has had its ups and downs. This is a given in the ever-changing world of crypto-related assets.
Of course, Marathon Digital's management understands the impact of this year's Bitcoin halving event. However, they also expect Bitcoin prices to rise in the coming years. If you plan to buy and hold Marathon Digital stock, you should have the same expectations.
Let's think about what it means CNBC An observed report on what happened historically after the Bitcoin halving. Reportedly, “Following the 2012, 2016, and 2020 halvings, Bitcoin price rose approximately 93x, 30x, and 8x, respectively, from the halving price to the cycle high.” That's what it means.
We are not trying to predict what will happen to the price of Bitcoin in the coming months. Rather, the important thing is that the Bitcoin halving event should not keep you up at night. If the Bitcoin price rises significantly over the long term, Marathon Digital should do well even if mining rewards are reduced.
Marathon Digital: Give yourself time to get it right
Even if you have a bullish theory about Bitcoin, it doesn't have to be correct for the time being. Bitcoin prices fluctuate based on greed and fear driven by headlines. Therefore, you should expect Marathon Digital's stock price to move significantly in both directions.
Over the years, there will be more Bitcoin halvings and other notable events, both known and unforeseeable. But all in all, there are only 21 million Bitcoins in existence.
So, if you are a Bitcoin believer, make sure you take the time to properly handle Marathon Digital Stocks. By holding it for a long time, it is expected that the bullish theory of cryptocurrencies will develop to your advantage. So investing in Marathon Digital may not be right for everyone, but it can be right for you if you have the right mindset and time frame.
As of the date of publication, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (directly or indirectly) any positions in the securities mentioned in this article.
