How Do Derivatives like Bitcoin Futures Allow Miners to Hedge against Halving-Related Price Volatility? ▴ Learn

How Do Derivatives like Bitcoin Futures Allow Miners to Hedge against Halving-Related Price Volatility?

Miners can sell Bitcoin futures contracts to lock in a selling price for the Bitcoin they expect to mine after the halving. This short hedge protects them from a potential price drop that could exacerbate the revenue loss from the reduced block reward.

By securing a future price, they can better plan for operational costs and maintain profitability.

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