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What Is the Impact of High Variance on a Miner’s Ability to Secure Financing?

High variance in solo mining creates unpredictable cash flow, making it extremely difficult for a miner to secure traditional financing or loans. Lenders prefer predictable revenue streams to assess repayment risk.

Pool mining's low variance and stable payouts provide the necessary predictability, improving the miner's creditworthiness and ability to secure favorable financing terms.

How Does a Protocol’s Total Value Locked (TVL) Relate to Its Projected Cash Flows?
How Does a Higher Hash Rate Correlate with a Lower Variance in Solo Mining Rewards?
What Is “Liquid Staking” and How Does It Differ from Solo Staking?
What Is the Difference between Solo Staking and Liquid Staking?