Researchers at Cambridge have revealed that Bitcoin miners have been deploying various means to minimize the risk encountered during digital assets mining.
Despite their various attempts to limit the risk with so many new strategies, the Cambridge Center for Alternative Finance has said it was elementary as they could do more. In the study, the Cambridge Center noted that even though mining pools gather hash rates together, Bitcoin miners purchase the hashrates from hashers, which means that they are still adding to the commoditization.
And as the spot market is being developed, it has paved the way for the derivatives market’s birth. Furthermore, the researchers said they found out that some high caliber companies have been putting products on sale based on hash rates.
Researchers fault the hedging method used by Bitcoin miners as basic
The main objective of the survey shows that there had been increased competition between Bitcoin miners as profit has reduced over time. This has made the miners look for different ways to limit their losses and maximize their profits.
The survey called the methods used by miners to hedge risks as elementary, citing that a big part of it involves holding digital assets (58%) or holding fiat currencies (41%). The research conclusion showed that few miners used complex means of hedging, which required digital assets, hashrate, and derivatives.
Survey shows crypto miners mined Bitcoin the most across the world
The survey also revealed that Bitcoin miners in North America are more open to using the derivatives hedging method than their counterparts in Asia. The survey revealed that Bitcoin still leads the race in most coins mined, with Ethereum coming close in second while Bitcoin cash takes the third position.
Bitcoin mining Is present across all the world regions while some certain areas mine different coins based on their preference. China is actively involved in selling mining equipment, pushing the United States to second with Canada coming close in third.
