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SBF
@SBF_FTX
1) This has come up a lot. If you have 1% of hashrate, and decide to throw it away for 3 months, you're losing about $7m. If you wanted to *break even* on a futures hedge you'd need a position of size *$700m* without having any impact. It's not economical.
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notsofast
@notsofast
Leveraged fiat-settled hashrate futures, like offered by @FTX_Official, could kill #Bitcoin. If a big enough miner can pull their hashrate enough to make a leveraged short more guaranteed-profitable than mining, and miners are indiscriminately profit-oriented...
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SBF
@SBF_FTX
Replying to
@SBF_FTX
2) To be clear, we *definitely* thought about this before listing it. We've decided not to list contracts in the past because of worries about manipulation, e.g. stablecoin market cap. But for this one, the math works out fine.
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SBF
@SBF_FTX
Replying to
@KryptoKat3
Sure but then the real reason they're shutting down isn't hashrate futures, it's because tehre were too many miners and it was unprofitable
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Ethan Vera
@ethan_vera
Replying to
@SBF_FTX
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@SBF_Alameda
Agreed this is highly unlikely to occur. Very few miners have 1% of the hashrate and the ones that do are not going to risk illegally manipulating markets. But also highlights the need for KYC on these contracts.
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SBF
@SBF_FTX
Replying to
@hash_bender
Only if it's done for tiny size--those chains can only soak up ~1% of BTC hashrate without having massive difficulty impact, so won't see huge effects here
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