At the University of California study was conducted, which found that cryptocurrency trading on the exchange is less profitable than its extraction through mining.
According to lead researcher group Danny Juan (Danny Huang), the potential earnings of those engaged in the mining of cryptocurrencies that are already in listings of stock exchanges, much higher than the probability that the value of the new cryptocurrency, which is not traded on the exchanges will increase by several times.
«I want to say that comparing mining and speculation in our study, we relied on the altcoins market that is extremely volatile,» said Juan.
Juan and his team analyzed the possible revenue potential from mining 18 cryptocurrency and compared it with the behavior of these cryptocurrencies on the market and how much you could earn at moderate risk. In the experiment, did not participate bitcoin and litecoin.
Based on these data, a team of researchers came to the conclusion that the income from mining is less risky than speculation. During the study was taken live trading data and took into account the costs during mining. The calculation was made on a one dollar investment. In the end the result is the following: when trading on exchange income ranged from -1% to 0.5%, while the return on investment from mining ranged from 7% to 18%.
«The majority of enthusiasts come to the market through trading altcoins, or through mining. However, the reward sometimes does not meet the risk and this is especially felt during strong market volatility,» — said Juan.
It is worth noting that it was a short term experiment, it lasted 7 days and was not in the best time for the market. Therefore, in different time and under different market results can be completely different.