Would you trade hashrate futures?
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is there some sort of hedging reason behind why any miner would use this or is it just pure speculation?
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Yup! Miners could use this to hedge their exposure to difficulty changes.
lets say hashrate goes up and difficulty goes up and they were long the derivative & make a profit. however because of higher difficulty they need to turn off machine and the loss from idle miners is offset by the profit from the long on derivatives...
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i mean yeah it sounds reasonable. but i don't know. for some reason it reminds me of the weather derivatives from enron.
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Surely instrument like this one is needed for miners at least for partial mitigation of risks. Question - will be if there is enough genuine liquidity for it to be instrument for miners and not just speculative BTC proxy.
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Yeah it's a good question--I think we'd only launch it if we had enough interest/liquidity for it
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