FTX, a crypto-derivatives exchange, offers Bitcoin hash rate futures contracts, allowing miners to hedge their risks. Crypto traders now trade bitcoin hash rate futures.
15 May, 2020, | AtoZ Markets – The FTX has become the first exchange to launch bitcoin hashrate futures. Bitcoin hashrate futures contracts are set at the average bitcoin mining difficulty over a given period of time. The FTX first revealed its plans of bitcoin hashrate futures in August. After almost nine months of work, it has today launched Bitcoin hash rate futures.
Miners Now Hedge on the Mining Difficulty
Bitcoin hash rate futures allows miners to hedge against bitcoin mining difficulties adjustments. FTX stated:
“It’s impossible to measure hash rate exactly; the best you can do is approximate it from block times and difficulty. However, given that difficulty adjustments attempt to maintain 10m block times, over long periods of time the average hash rate will be proportional to the average difficulty. So that means, roughly speaking, difficulty futures should behave similarly to hash rate futures”.
FTX CEO Sam Bankman-Fried told that miners and related companies showed a lot of interest in bitcoin hashrate futures. He also added:
“We’ve been growing out our relationships with mining firms and intermediaries. So, we now think we have enough of a network to bring real interest and flow to these futures”.
What is Bitcoin Hashrate Futures?
Bitcoin Hashrate Futures are the futures that expire to the average BTC mining difficulty over a period of time. It represents the total hash power which is used to mine BTC. Each Hashrate Future has an expiration start and end time. The start at the beginning of a quarter and end at the end of the quarter. It means that the Q3 2020 Hashrate Future expires during July-September 2020.
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