How Can a Miner Use a Forward Contract to Lock in the Future Sale Price of Their Hardware? ▴ Learn

How Can a Miner Use a Forward Contract to Lock in the Future Sale Price of Their Hardware?

A miner can enter into a forward contract to sell their ASIC hardware to a buyer at a specified price on a future date. This allows the miner to lock in a guaranteed residual value for their asset, hedging against the risk of rapid technological obsolescence or a sudden drop in the cryptocurrency price that would otherwise depress the hardware's secondary market value.

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