RATE Group | Forget BTC Price, It’s Now Possible to Trade Bitcoin Hash Rate Futures
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Forget BTC Price, It’s Now Possible to Trade Bitcoin Hash Rate Futures

15 May Forget BTC Price, It’s Now Possible to Trade Bitcoin Hash Rate Futures

Posted at 09:03h in Bitcoin News by

Bitcoin (BTC) holders now have a new tool to leverage the largest cryptocurrency’s growing ecosystem as two new futures markets go live. 

In a blog post on May 15, derivatives platform FTX confirmed it had launched a futures product which tracks not Bitcoin’s price, but hash rate.

FTX takes on first Bitcoin hash rate futures 

Simply dubbed “hashrate futures,” the contracts track the average difficulty of the Bitcoin network each day from the start to the end of each quarter.

The difficulty is used, not hash rate, because as FTX notes, measuring hash rate accurately is impossible. 

“However, given that difficulty adjustments attempt to maintain 10m block times, over long periods of time the average hashrate will be proportional to the average difficulty,” the blog post explains.  

So that means that, roughly speaking, difficulty futures should behave similarly to hashrate futures.

Hash rate refers to the computing power dedicated to the Bitcoin network at a given time. The…

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