Skip to main content

What Financial Derivative Is Most Similar to the Concept of Expected Value in Mining?

A forward contract is most similar. The expected value in mining represents the anticipated future value of the block reward.

A forward contract allows a miner to lock in a price for their future-mined coins, effectively securing a predetermined expected value for their output, mitigating price risk.

How Does a Futures Contract on a Cryptocurrency Allow a Mining Pool to Hedge against Difficulty Changes?
How Do ‘Time-Locks’ in Smart Contracts Relate to Contract Performance Deadlines?
How Is a Forward Contract Similar to a Token Vesting Agreement in Terms of Future Commitment?
How Does the Size of the Hash Output (E.g. SHA-256) Relate to the Nonce?