Author: Jeff Garzik 2014-10-25 18:31:55
Published on: 2014-10-25T18:31:55+00:00
The hashpower market is evolving towards financial instruments where the owner of the hashpower is not necessarily the recipient of the income. These instruments are becoming tradable and derivatives and hedging are being built on top of that to hedge risks at each layer. Market players also create agreements with miners, receiving negative value if hashpower is simply shut down. It is too simplistic to assume altruism is necessary and simplistic models cannot predict what hashpower does for medium- to long-term contracts in business-to-business transactions. Jeff Garzik, a Bitcoin core developer and open-source evangelist, believes herd behavior like "Flag day" is unlikely for well-informed and prepared market participants. Alex Mizrahi emphasizes the need to avoid relying on altruism, as keeping mining devices on for over two weeks when it costs money is irrational.
Updated on: 2023-06-09T03:28:28.033773+00:00