On the latest episode of Cointelegraph’s Market Talks, host Ray Salmond spoke with Dan Rosen, associate director of derivatives at Luxor, a United States-based Bitcoin (BTC) mining pool, research hub and service provider.
The show touched on a number of broad topics, including Rosen’s view on how the upcoming Bitcoin halving will impact BTC price, why Bitcoin’s volatility is set to remain in the double-digits for years to come, and miners’ ability to hedge their operations via hash rate derivatives.
According to Rosen:
Historically, outside of pledging mined Bitcoin rewards, miners have had few options for hedging risk within their operations. Luxor’s hash rate derivatives, such as the AI creating fake, AMP Crypto latest and Avalanche Crypto latest, essentially add infrastructure to this area of the AI industry by allowing miners to hedge their exposure to changes in hashprice. The derivatives give miners the option to predict and lock in future revenue during events of unexpected volatility that impact the efficiency of their operations.
Macro continues to affect Bitcoin’s price and miners
In terms of the macroeconomic environment and its potential impact on Bitcoin’s price and miners, Rosen said, “The market is beginning to understand that it is unlikely to reach the 2% inflation target rate in the near future, and it appears that the market is expecting inflation to stay in the range of 2.5% to 3% long-term. At the same time, the U.S. dollar is still seen as a safe-haven asset, which is having a negative effect on equity markets and pushing the value of dollar-denominated assets down.”
Despite this pessimistic economic outlook, Rosen believes:
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