BitcoinAlchemist on Nostr: If a miner directs their hashrate to a pool with 5% hashrate, they only get paid 5% ...
If a miner directs their hashrate to a pool with 5% hashrate, they only get paid 5% of the time (assuming proportional payouts).
If a miner hedges their hashrate (by betting against their own pool) then they get paid 95% of the time.
Hedging hashrate therefore reduces cash flow variance for miners in pools with proportional payouts.
Which is preferable?
Make money 5% of the time OR make money 95% of the time?
Published at
2024-07-13 16:02:05Event JSON
{
"id": "747e760a09dd2fc63c5214ba8111c4e16019eca9b2b5eb4776c1cf85a3865e64",
"pubkey": "e1c7a2e617a0fd25a8b391789d8aa4671c1d61dfa1801ae62dae99f3bbfda437",
"created_at": 1720886525,
"kind": 1,
"tags": [],
"content": "If a miner directs their hashrate to a pool with 5% hashrate, they only get paid 5% of the time (assuming proportional payouts).\n\nIf a miner hedges their hashrate (by betting against their own pool) then they get paid 95% of the time.\n\nHedging hashrate therefore reduces cash flow variance for miners in pools with proportional payouts.\n\nWhich is preferable? \nMake money 5% of the time OR make money 95% of the time?\nhttps://m.primal.net/JPVE.jpg",
"sig": "570ad748c486d2746f25e3dd45e09b56205a9e8f42bb35323393f12b1ee0d03353796bfe7b2005fa859420adddd172440edd461279467d23789a1607bcfd7cb2"
}
