Author: Alex Mizrahi 2014-10-25 19:08:05
Published on: 2014-10-25T19:08:05+00:00
The hashpower market is evolving towards financial instruments where the owner of the hashpower may not receive income. These instruments are becoming tradeable, although they are not new. In 2012, Meni Rosenfeld issued tradeable mining bonds specifying how many bitcoins bondholders would receive depending on difficulty and other factors. However, the bondholder cannot check where these bitcoins come from. The owner of the mining equipment can temporarily turn off that equipment and buy them on the market, pocketing the difference. Simplistic models cannot predict what hashpower does in the face of business-to-business medium- and long-term contracts, emphasizing the importance of game theory for business people.
Updated on: 2023-06-09T03:28:09.758730+00:00