Conversation

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.

Quote Tweet

notsofast

@notsofast

May 20, 2020

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...

Show this thread

SBF

@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.

12:09 AM · May 21, 2020Twitter Web App

Replying to

and

Yea, stablecoin mc would have been a tempting proposition for a few providers, I'm sure.

Replying to

and

To be clear. If this was done and a big miner did execute. It’s kind of a win for the remaining miners. They get more btc. This ain’t like a regular commodity. There is no supply feedback. You are basically giving miners free money. I’d never trade that. It’s a fools game