Rigly is excited to introduce a new type of mining auction. You can now bid on hashrate in two-week time periods aligned with Bitcoin's network difficulty adjustment.
We call them Forward Auctions.
Before delving into the specifics of Forward Auctions, it's important to understand the concept of network difficulty in bitcoin mining.
Bitcoin mining difficulty is a measure of how difficult it is to find a new block. The difficulty is adjusted every 2,016 blocks – roughly every two weeks – to ensure that the average time to find a new block remains 10 minutes. As more miners join the network, the difficulty increases to maintain the 10-minute block time.
Fun fact: the 2,016 block period following a difficulty adjustment is commonly called an epoch.
How it works
Forward Auctions on Rigly allow miners to bid on hashrate for a specific 2,016 block difficulty epoch in the future, providing them with the opportunity to plan ahead based on projected difficulty levels and market conditions.
Bitcoin mining is like farming
Imagine a farmer who is planting his crops for the next season. He knows that the market price for corn will fluctuate, so he enters into a forward agreement with a buyer to sell his corn at a fixed price before harvest. This way, the farmer is able to plan ahead and make informed decisions about his crop yields, and the buyer can be sure that they will have the necessary corn to meet their needs.
In a similar way, Forward Auctions on Rigly enable bitcoin mining farms to plan ahead and make informed decisions about their hashrate yield, and bidders can plan ahead and secure hashrate for their mining needs based on current market conditions.
The introduction of Forward Auctions is a unique opportunity for the bitcoin mining industry.
For buyers: Auctions offer the chance to plan ahead and secure hashrate at a price that reflects projected market conditions
For sellers: Auctions provide a potential to earn more for hashrate by selling it at the current market price. This can provide a more stable revenue stream and can help sellers better manage their mining operations.
The introduction of Forward Auctions is an experimental step forward for the bitcoin mining industry. Rigly is excited to see how this new type of auction is received in our marketplace. Feedback welcome!
Update 1/29: Forward auctions now only require 15% deposit. The balance is payable when your mining term begins.