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Bitcoin hashrate futures can support miners

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Bitcoin hashrate futures can support miners

Bitcoin hashrate futures can support miners
CONTENT

  • FTX launches bitcoin hashrate futures.

  • FTX was the first trading platform to offer such contracts to clients.

  • Players have shown great interest in the new trading instrument.

International consortium of news organizations developing transparency standards.

FTX trading platform pioneered the crypto industry with the launch of a new trading tool – Bitcoin hashrate futures.

Bitcoin hashrate futures can support miners

Recently, the FTX cryptocurrency derivatives exchange officially introduced a brand new trading instrument – futures contracts, which allow you to bet on the future difficulty of Bitcoin mining (BTC). The novelty has already attracted the attention of traders.

Hashrate instead of Bitcoin betting

The FTX exchange became the first trading platform to offer its clients to make money on changes not in the bitcoin rate, but in the hash rate in the BTC network. Thus, in fact, traders are invited to place bets on the growth (or decrease) of the efficiency of the entire ecosystem of the first cryptocurrency in the world during the contract period..

For calculations, the new instrument will be based on such a basic parameter as the average mining difficulty over a certain period of time (in the case of FTX futures, for one quarter). To do this, it is planned to determine the complexity of the production of each block for a given quarter and display its average indicator, divided by 1 trillion. Accordingly, the exchange proceeds from the fact that over a long period of time, the concept of the average hash rate is comparable to the average mining difficulty..

Bitcoin hashrate futures can support miners

The exchange launched three contracts for the BTC hash rate – for the 3rd quarter of 2020, as well as for the 4th quarter of this year and the 1st quarter of the next. It is noteworthy that in the very first 12 hours after the launch, bullish futures on the bitcoin hashrate showed active growth, and intraday trading volumes of such contracts almost reached $ 1 million.

At the time of this writing, the bitcoin hashrate index (having a scale from 0 to 100) for May was 16, but the same indicator for the next quarter was above 18, and for the 1st quarter of 2021, the 20 was tested.

Despite its novelty, in general, BTC hashrate futures are similar to all other futures contracts. According to many participants in the crypto industry, they can be a blessing for miners, allowing them to finally hedge their risks..

Perhaps it is no coincidence that the launch of the new instrument took place immediately after the third halving in the Bitcoin network, which halved the amount of reward for each new mined block. Many feared that this would provoke a massive surrender of miners and a collapse of the entire MTC network.

At least, the head of FTX himself, Sam Bankman-Fried, commented that recently, representatives of the exchange have talked with a large number of miners and noted a high interest on their part in such a financial product..

In any case, the new trading instrument will be another step towards a more comprehensive development of the infrastructure of the MTC ecosystem and its going beyond the ways of “just trading bitcoin,” he added..

Bitcoin hashrate futures can support miners

Do you find the new trading tool useful? Do you think that other exchanges may soon launch bitcoin hashrate futures? Share your opinion in the comments!

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