How Does a Miner Use a Put Option to Lock in the Value of Their Future Cryptocurrency Earnings? ▴ Learn

How Does a Miner Use a Put Option to Lock in the Value of Their Future Cryptocurrency Earnings?

A miner can buy a put option, giving them the right, but not the obligation, to sell their future-mined cryptocurrency at a predetermined strike price. This sets a floor on their selling price, guaranteeing a minimum revenue for their mining efforts, thereby hedging against the risk of a price drop before they can sell the mined coins.

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