A Bitcoin veteran believes the recent fall in oil markets, when a certain futures contract traded at -$37 at one point, is ultimately a positive for the cryptocurrency markets, and more specifically Bitcoin miners.
Reas Antonopoulos, an ex-security engineer and now a full-time Bitcoin educator, expressed his thoughts via a YouTube video titled "Down the Rabbit Hole" last week.
Antonopoulos said falling oil prices mean electricity rates experience a drastic, but fragmented, fall globally - leading to better revenues for Bitcoin miners.
The U.S. is the largest oil producer in the world, primarily due to "Fracking," and supplies over 12,000 barrels of high-quality crude oil each day.
No signs of immediate recovery exist yet and oil tankers are being used as storage units across the world's oceans.
This creates a scenario for cheaper oil, which in turn, makes U.S.-based Bitcoin mining operations "Much more competitive" and profitable.
Bitcoin operators - who rely on coal - would then received benefits of cheaper power and reap better profits.
"(If) a gas-fired or oil-fired power plant has half the cost of energy because its oil is much cheaper, it's going to cost less to get electricity from your coal plant.
As an insight, Antonopoulos noted miners are no longer driven by which firm has the best mining rigs.
Instead, electricity plays a major role in dictating profitability for mining businesses, which remains "Dominated" by the cost of oil in some regions.
Early Bitcoin advocate explains how falling oil markets mean profits for America and China BTC miners
gepubliceerd op Jun 1, 2020
by Cryptoslate | gepubliceerd op Coinage
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