HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Traders Can Now Make Bets On Bitcoin’s Hashrate With New BTC Hashrate Futures Offering

Mining 2020/05/15 19:24 by Brenda Ngari
Traders Can Now Make Bets On Bitcoin’s Hashrate With New BTC Hashrate Futures Offering

Crypto derivatives exchange FTX will be issuing futures linked to the hashrate of the world’s leading cryptocurrency, bitcoin (BTC).

FTX Now Has A Derivatives Contract Offering Investors Exposure To BTC’s Hashrate

Hong Kong-based exchange FTX has unveiled a new product for bitcoin enthusiasts to leverage the coin’s booming network: hashrate futures calculated using the average difficulty of mining.

According to a blog post on Friday (May 15), FTX is set to roll out hashrate futures that are based on the average BTC mining difficulty from the beginning of a quarter and expire at the end of the quarter. The exchange explains that the futures product is based on the mining difficulty as it is virtually impossible to accurately measure the hashrate.

It’s impossible to exactly measure hashrate–the best you can do is approximate it from block times and difficulty.” 

The post further reads:

“However, given that difficulty adjustments attempt to maintain 10m block times, over long periods of time the average hashrate will be proportional to the average difficulty. So that means that, roughly speaking, difficulty futures should behave similarly to hashrate futures.

The expiration value for the hashrate futures will be determined by first calculating the number of blocks mined during a particular quarter and then getting the difficulty for each block. The difficulties should then be averaged together before dividing the result by 1 trillion.

Both bitcoin hashrate and mining difficulty were posting record highs days before the halving. However, the hashrate has been plunging ever since the rewards for miners were slashed on May 11.

FTX’s first hashrate futures contract for Q3 2020 will expire to the average difficulty of mining a bitcoin for July-September 2020. 

Notably, FTX first revealed intentions to launch bitcoin hashrate futures back in August last year. This means that the team spent at least nine months building the newly-launched futures product.

Growing Bitcoin Futures Products

Worth mentioning that FTX has been introducing new features throughout this year. Just last month, the exchange unveiled Oil Futures that expire to the spot price of West Texas crude oil, plus $100.

Also, with its new offering, FTX joins the likes of other crypto exchanges like Bitfinex that are scaling their derivatives offerings. 

Earlier this month, Seychelles-based Bitfinex exchange announced the launch of first-of-its-kind BTCDOM perpetual swap that allows traders to bet on bitcoin’s dominance rate. BTC dominance is an indicator of bitcoin’s share versus the share of alternative cryptocurrencies. The contract has no expiry date and pays out in Tether (USDT).

0 Like(s)



You should also read...

Mining 10/12/19 16:15 by Christine Vasileva
Bitcoin Hashrate Futures Coming in 2020, Mining Boom Inbound?
Mining companies may benefit from a growing market for Bitcoin (BTC) derivatives to finance and support their power-hungry operations. In 2019, despite price fluctuations, mining activity remains near...
Read More
Bitcoin 05/05/20 19:37 by Marco Tulio
Ahead of Bitcoin’s Halving, these two key metrics are posting all-time highs
The metrics used to measure Bitcoin’s mining activity are approaching their ATHs, indicating an increase in the number of active miners on the bitcoin network, as they eagerly prepare for next ...
Read More
Mining 17/05/20 22:00 by priyeshu
Traders Can Now Bet on the Bitcoin Mining Difficulty With FTX’s Futures
Cryptocurrency derivatives exchange FTX has announced the launch of Bitcoin Hashrate Futures. According to the announcement, the contracts expire to the average Bitcoin mining difficulty at the end of...
Read More
Mining 05/06/20 12:23 by Samuel Wan
Bitcoin Mining Difficulty Drops by 9%, Is Price About to Follow?
The Bitcoin blockchain saw its mining dificulty adjust downwards on June 5. It has now become easier to mine BTC. Historical data shows that price and mining difficulty has elements of positive correl...
Read More
Mining 16/09/20 00:57 by Olivia Brooke
Mining difficulty to intensify immensely as Bitcoin’s hashrate hits new all-time high
There has been a widespread usage on the Bitcoin network over the past weeks. This is as a result of the investment influx and trading interest, all of which have played a role in Bitcoin’s cur...
Read More