What Risk Does the Miner Still Face If the Bitcoin Price Rises Significantly? ⎊ Path

What Risk Does the Miner Still Face If the Bitcoin Price Rises Significantly?

If the Bitcoin price rises significantly above the contract price, the miner faces an opportunity cost. They are obligated to sell their Bitcoin at the lower, agreed-upon forward price.

This means they miss out on the potential extra profit from selling at the higher spot market price. This is a common trade-off for any hedger who uses a fixed-price contract to reduce downside risk.

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