bitcoin news

First Hashrate Futures Arrive as a Hedge Against Bitcoin Volatility

The concept of "futures" is a well-known alternative in markets such as bitcoin (BTC) and cryptocurrencies. However, it was not linked to Bitcoin mining, at least until now, when the first hashrate futures were announced for anyone to trade.

Bitnomial, an exchange focused on bitcoin derivatives, launched in collaboration with Bitcoin mining company Luxor the first Bitcoin hashrate futures in the United States. These contracts provide a novel way for miners and investors in general to manage hashrate volatility, vital to the functioning of the Bitcoin network. The hashrate expresses the amount of processing power used to process transactions and create blocks in Bitcoin's distributed accounting.

With the futures that Bitnomial will offer from the end of March, users will be able to protect themselves against price changes in the hashrate, sensitive to eventualities such as the increase in the cost of energy or the decrease in the price of BTC. The hashrate price variation may be especially important in light of the next Bitcoin halving, projected for April 2024.