The future of BTC mining and the Bitcoin halving

cointelegraph.com:

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 essentially add infrastructure to this area of the 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. 

Related: Bitcoin difficulty jumps 6% to new peak as miners ignore BTC price dip

Regarding the macro and how this could impact Bitcoin’s price and its miners, Rosen said, “The market is starting to realize that we’re probably not going to get to that 2% inflation target rate any time soon, and it does appear that the market is starting to price in that inflation longer-term will hover around the 2.5% to 3% range. At the same time, we’re still seeing the U.S. dollar as a flight-to-safety asset, and this is impacting equities and creating macro headwinds at the same time, leading to a depreciated value of dollar-denominated assets.” 

Despite this dismal economic outlook, Rosen believes:

Listen to the full episode of Market Talks on the new Cointelegraph Markets &