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The Halving and Bitcoin Mining: 3 Things to Know Before Investing in This Explosive Industry


History shows that during bull markets, Bitcoin (CRYPTO: BTC) miners almost always outperform the cryptocurrency itself. Yet over the past few months, Bitcoin miners have been hit particularly hard as investors poured into spot Bitcoin ETFs as a means of Bitcoin exposure via the stock market, a role miners previously served. Making matters worse, Bitcoin recently underwent its fourth halving, an event that cut the block reward paid to miners in half, effectively cutting their main source of revenue.

For miners, without a significant price surge, they face a serious challenge to stay afloat and keep their stock prices up. While history has shown that halving usually precedes surges in Bitcoin's price and pulled many mining stocks with it, investing in this industry isn't easy. Before choosing a Bitcoin mining company to your portfolio, make sure you consider these three things.

Image source: Getty Images.

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Source Fool.com

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