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How does ROI differ from ROIC when it comes to investing in digital currencies?

avatartye 385Dec 18, 2021 · 3 years ago1 answers

Can you explain the difference between ROI and ROIC when it comes to investing in digital currencies? How do these metrics impact investment decisions?

How does ROI differ from ROIC when it comes to investing in digital currencies?

1 answers

  • avatarDec 18, 2021 · 3 years ago
    When it comes to investing in digital currencies, ROI and ROIC play a significant role in decision-making. ROI helps investors assess the profitability of an investment by comparing the returns to the initial investment cost. On the other hand, ROIC takes into account the total capital invested, including debt and equity, to evaluate the efficiency of capital utilization. Both metrics provide valuable insights into the potential returns and efficiency of investments in digital currencies. However, it's important to note that ROI and ROIC should be used in conjunction with other factors such as market analysis and risk assessment to make informed investment decisions in the volatile digital currency market.