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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

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...

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and

They wouldn't just throw it away. They'd throw it at another chain. BAV/BCH etc... That makes the opportunity cost something much less than 7M, something like 90-95% of 7M

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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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and

Fortunately in your scenario, we're talking about 1% 😉

SBF

@SBF_FTX

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@hash_bender

yeah, agreed you could see small impact on the margin but wouldn't expect anything large in terms of HASH pricing

5:35 AM · May 21, 2020Twitter Web App