HairyMaclairy
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Degenerate bull hatter & Bitcoin monotheist


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February 09, 2018, 04:56:12 AM

In theory the futures market is so producers (miners) can lock in the sale price of their goods (BTC) when produced in the future. A miner is a natural short because they have to sell to cover electricity costs. Companies with a future need to consume BTC can hedge against soaring prices.

Of course it doesn’t work that way in reality.