Topic: Difficulty Increase Insurance - page 2. (Read 3895 times)
The problem I have with these insurances is guaranteeing the insuring party will have sufficient capital to pay in the event required. That is why I wish there was a way to directly short BTC, I think this would help both those long and short BTC.
Cool. That's pretty much what I was thinking of, although that pays out proportionally (well, it won't after we hit 100M difficulty, but theoretically it could pay out proportionally).
Just trying to gauge interest to see if any miners would find this valuable. Right now there is a lot of uncertainty in mining about future difficulty increases of the network, and that can make a huge difference on the profitability of expanding mining rigs.
For example, you could have insurance against difficulty increases by certain blocks, which would pay out if difficulty increased more than expected. For example, you could buy difficulty insurance that the difficulty after the next was > 70,000,000, where you might pay 1 BTC and get 10 BTC if it was above that level. Obviously the market would help determine the prices of such insurance. This could be a way to hedge against unexpected difficulty increases so that you don't lose your mining investment. Or you could simply do it for fun and try to make money by betting what the difficulty would be.
I am not offering any service of any kind, just trying go gauge general interest.
For example, you could have insurance against difficulty increases by certain blocks, which would pay out if difficulty increased more than expected. For example, you could buy difficulty insurance that the difficulty after the next was > 70,000,000, where you might pay 1 BTC and get 10 BTC if it was above that level. Obviously the market would help determine the prices of such insurance. This could be a way to hedge against unexpected difficulty increases so that you don't lose your mining investment. Or you could simply do it for fun and try to make money by betting what the difficulty would be.
I am not offering any service of any kind, just trying go gauge general interest.
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