20 sats \ 1 reply \ @Natalia 22 Jun \ on: Miners Mostly Lose — Bitcoin Prediction Market for Miner Insurance and ROI BitcoinPredictionMarket
So we know mining pools are critically centralized, and we need to do something about it. Miners need a way to profitably mine in smaller StratumV2 pools with higher variance. That’s where we come in.
https://www.bitcoinprediction.market/ seems interesting but I still don't understand how these betting can solve this problem? 🤔
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100 sats \ 0 replies \ @HYPERBITCOINZATION OP 22 Jun
So Bitcoin Mining finance is basically broken, and we’re fixing it.
Mining is essentially a globally decentralized provably probabilistic computational race.
Miners compete to be the first to publish the next block, and whoever wins makes money. The mining contest is a winner-take-all, so the losers do not make money. All miners lose most of the time, so all miners do not make money most of the time.
Bitcoin Prediction Market has created a betting market around the mining contest. It enables people to bet on the winners and losers of the next mining contest.
Miners can hedge against the risk of losing the race. They can do this by betting against their own pool, or on a dominant pool like Foundry or Antpool.
Speculators can make money by predicting which pool will win based on their hashrate.
Bitcoin Prediction Market revolutionizes mining finance by enabling miners to protect their cashflow and speculators to profit from the block discovery process.
In the past, miners could only make money by winning the contest, and speculators could only make money by betting on price. Now, everyone can profit every single block!
Let me know if this helps to understand!
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