In our latest update, we’re diving deep with Ray Salmond, Head of Markets at @cointelegraphmarketresearch, into Luxor Tech’s innovative Hashprice Marketplace. Through our Hashprice Contracts, ASIC miners can now trade their Hashrate production for cash, on a daily basis.
While traditional commodity producers have long benefited from a variety of financial tools designed to mitigate risk, the same can’t be said for Bitcoin miners… until now.
It’s not just a step, but a massive leap in the world of Bitcoin mining derivatives. If you’re a miner, this is the future you’ve been waiting for. Here’s a snapshot of what we cover ins this video:
00:00 Intro
00:20 Computer Power as a Commodity
00:58 Hashrate & Hashprice
03:31 How Are Hashrate Markets Functioning
07:00 Bitcoin Mining Is Now Dynamic
08:50 The Trend in Hashrate
A Glimpse into Traditional Commodity Hedging ?: Producers in traditional commodity markets, from farmers to oil producers, have an array of financial products at their disposal. They’ve long used forward contracts, futures, and power purchase agreements to navigate the often turbulent financial seas. ⛓
The Digital Commodity Challenge ?: Enter the realm of Bitcoin mining, a digital commodity market that has, for the longest time, lacked comprehensive hedging tools. With Bitcoin miners primarily producing hashrate, determining the hashprice (a term Luxor introduced in 2019) isn’t just about Bitcoin price. Other factors, like block subsidies, transaction fees, and network difficulty, play crucial roles. ?
Past Hedging Avenues for Miners ⚙️: Explore how Bitcoin miners, until recently, had limited hedging options, mostly revolving around Bitcoin futures and a few short-term hashrate forward options. This lack of comprehensive tools left many exposed to the unpredictable hashprice risk, making sustainable business building a challenge in a cyclical industry. ?
Luxor’s Solution: Hashprice Non-Deliverable Forward ?: Luxor’s revolutionary Bitcoin Hashprice Contract is poised to change the game. In this segment, we discuss how this innovative product can integrate into miners’ hedging strategies, borrowing successful tactics from traditional commodity markets. The objective? Protect against financial risk, bring certainty to business planning, and facilitate better access to capital. ?
– Luxor website: ?
– Luxor Derivatives: ?
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– Luxor LinkedIn:
#asicminer #asicmining #bitcoin #bitcoinminers #bitcoinmining #derivatives #optionstrading #futurestrading #derivativestrading
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