What Is the Concept of 'Opportunity Cost' in Choosing to Mine versus Buying the Cryptocurrency? ▴ Learn

What Is the Concept of ‘Opportunity Cost’ in Choosing to Mine versus Buying the Cryptocurrency?

Opportunity cost is the value of the next best alternative that must be foregone when a choice is made. For a miner, the opportunity cost of investing capital in mining hardware and operational expenses is the potential profit they could have earned by simply buying and holding the equivalent value of the cryptocurrency itself.

This comparison is essential for a rational investment decision.

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