Why This Bitcoin Mining Stock Is a Bargain Buy

Out of the dozen or so Bitcoin mining companies that are publicly traded, it can be difficult to ascertain which mining company is most worthy of your investment, in part because the industry is so new. 

For miners to maximize profits, they must do a few things. First, they need to make sure they are mining as much Bitcoin as possible. Just like with regular mining, companies with the most effective equipment will have the greatest capacity to mine the next block. 

To analyze the capacity of Bitcoin miners, the industry uses a statistic known as hashrate. The hashrate represents the mining power a company possesses. You could compare it to horsepower in a car. Instead of miles per hour, hashrate is measured in what is called exahashes per second (EH/s). The greater the hashrate, the more often they will solve those math problems and earn rewards in the form of new coins -- thus increasing profitability. 

Continue reading


Source Fool.com