Replying to Avatar James Pierog

This chart shows the variance reduction if the pool has 3% of global hashrate (the pool in the first chart has 5% of global hashrate).

The reduction in expected value reflects the value of the insurance that the miners purchase by hedging.
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James Pierog 1y ago

If the pool has 15% of global hashrate then hedging is still a good idea.

By hedging miners and pools can eliminate payout swings due to pure randomness.

Making money most of the time reduces the risk of not making money sometimes!

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