ADVERTISEMENT

[email protected]

  • Submit Press Release
  • Submit Guest Post
  • Write for Kryptomoney.com
Latest Crypto News
  • News
    • Bitcoin News
    • Blockchain News
    • Cryptocurrency News
    • Ethereum News
    • Exchanges News
    • Regulations News
  • Price Analysis
    • Bitcoin (BTC) Analysis
    • Ether (ETH) Analysis
    • Ripple (XRP) Analysis
    • Litecoin (LTC) Analysis
    • Bitcoin Cash (BCH) Analysis
    • Binance Coin (BNB) Analysis
  • Industry
    • Events
    • Press Release
  • Start Here
  • Advertise
No Result
View All Result
  • News
    • Bitcoin News
    • Blockchain News
    • Cryptocurrency News
    • Ethereum News
    • Exchanges News
    • Regulations News
  • Price Analysis
    • Bitcoin (BTC) Analysis
    • Ether (ETH) Analysis
    • Ripple (XRP) Analysis
    • Litecoin (LTC) Analysis
    • Bitcoin Cash (BCH) Analysis
    • Binance Coin (BNB) Analysis
  • Industry
    • Events
    • Press Release
  • Start Here
  • Advertise
No Result
View All Result
Latest Crypto News
No Result
View All Result
Home News

Bitcoin Proponent Claims Dwindling Oil Price Is Ultimately Positive for the Crypto Market, Especially BTC Miners

Bitcoin (BTC) Has Been Seen as a Firm Guide for the Rest of the Crypto Market, at the Moment Trades at $9,693

Tomiwabold Olajide by Tomiwabold Olajide
June 1, 2020
in News
0
oil
0
SHARES
115
VIEWS
Share on FacebookShare on Twitter

Crude oil prices were mostly hit by the Coronavirus pandemic as many economies came to a crunch. The use of oil in the travel industry and factories reduced significantly as social restrictions and lockdown were in place as a result of the Coronavirus pandemic. The imbalance between demand and supply forces resulted in oil price hitting historical lows, like futures, including the WTI, entered the negative territory. Despite the oil market rebounding, oil prices are still low compared to before the coronavirus incidence.

However, a Bitcoin proponent claims the dwindling oil markets which caused oil futures to enter into the negative territory is ultimately positive for the cryptocurrency markets, especially Bitcoin Miners.

Last month, Bitcoin Miner sell-offs increased dramatically following May 12 halving which saw mining rewards halved from 12.5 BTC to 6.25 BTC.

Miners had to sell a portion of their existing supply to cover operational costs as the breakeven cost of mining BTC is stated to be above $12,000 after halving which is in no way supported by Bitcoin’s recent price.

BTC/USD Daily Chart

Bitcoin (BTC) has been seen as a firm guide for the rest of the crypto market, at the moment trades at $9,693.

Why Dwindling Oil Prices Are a Blessing in Disguise Specifically for the US-Based and Chinese Miners

Andreas Antonopoulos, a former security engineer and presently a full-time Bitcoin advocate expounded on how falling oil price could benefit the Miners, in a recent YouTube video tagged “Down the Rabbit Hole”.

Antonopoulos drew his inference from the premise that the unit cost of electricity in some regions is controlled by oil prices. Therefore, the general drop in oil price may lead to cheaper electricity which will be of gains to the Miners. He stated further that this may not apply to all countries of the world. Miners have been viewed as an unmatched sell pressure in the market alongside the Exchanges.

The Bitcoin advocate believes that the fall in oil price will open up bigger opportunities for cheap power which will be most applicable to the US which gets 36% of its energy from crude oil. He sees that this will garner in profits for US-based Crypto Miners.

Another group that is set to benefit immensely is the Chinese Miners which make up 66% of the global hash rate in the year 2019. Even though Chinese Crypto Mining is rounded off with a coal-powered hash.

Antonopoulos believes dwindling oil prices would still garner profits for Chinese Miners. This he stated:

“Because energy and electricity is a fungible commodity if you are connected to a coal-fired power plant and somewhere else, 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…”

In the last few days, the crypto market has made remarkable progress as seen in the Ethereum recent upsurge to levels above $240, Bitcoin traded back at $9,678 while LINK ranked as the best-performing Altcoin out of the top-20 rising than 6% and trading at $4.4 by the time of writing.

Image Credit: Shutterstock

Tags: Andreas AntonopoulosBitcoin (BTC)bitcoin minersBTC/USDCryptocurrency Market
Previous Post

Bitcoin’s Stock to Flow Model Predicts Upcoming Bull Market

Next Post

Tether Launches USDT Stablecoin on OMG Network to Evade Ethereum Congestion

Next Post
USDT

Tether Launches USDT Stablecoin on OMG Network to Evade Ethereum Congestion

Recent Stories

Cardano Price Analysis: Bulls Drive ADA/USD Price Past $0.37, Cardano Wants To Help Twitter Decentralize Social Media

Cardano Price Analysis: Bulls Drive ADA/USD Price Past $0.37, Cardano Wants To Help Twitter Decentralize Social Media

January 16, 2021
Is an Altseason Coming? Chainlink (LINK) Hits New Record Highs of $21.40, Polkadot & Cosmos (ATOM) Surge

Is an Altseason Coming? Chainlink (LINK) Hits New Record Highs of $21.40, Polkadot & Cosmos (ATOM) Surge

January 15, 2021
Quickly

Financial Advisor Introduces Petition for the UK Government to Ban Crypto Transactions

January 15, 2021
LTC Price Analysis: Steep Correction on LTC/USD From $186 High, Flare Networks Announces Litecoin Airdrop

LTC Price Analysis: Steep Correction on LTC/USD From $186 High, Flare Networks Announces Litecoin Airdrop

January 15, 2021
Bitcoin

Bitcoin Falls Below $35k Despite the Unveiling of Biden’s $1.9 Trillion Stimulus

January 15, 2021
cryptocurrencies

The Impact Of Cryptocurrencies On The Global Marketplace

January 15, 2021
What Will 2021 Hold for Bitcoin and Crypto? BTC Price Prediction and Events To Watch Out for by Mid-2021

What Will 2021 Hold for Bitcoin and Crypto? BTC Price Prediction and Events To Watch Out for by Mid-2021

January 14, 2021
Trading

PayPal Crypto Trading Volume Climbed $242 In One Day

January 14, 2021
Bitcoin

Government of Pakistani Province Announces Launch of Bitcoin Mining Farms

January 14, 2021
Ethereum

Google Data Reveals “Ethereum” Searches Hit All-Time High

January 14, 2021

Email Subscription

Pages

About Us

Contact Us

Disclaimer

Get Latest Cryptocurrency And Bitcoin News

Privacy Policy

Write for Kryptomoney.com

Category

Events

General

Interviews

News

Price Analysis

Press Release

Sponsored

Information

About Us

Submit Press Release

Submit Guest Post

Contact Us

Social Icons

[email protected]

©KryptoMoney 2019 | Southridge Internet Corp

No Result
View All Result
  • Resource List
  • News
  • Price Analysis
  • Events
  • Press Release
  • Sponsored

©KryptoMoney 2019 | Ess Commerce Private Limited

  • bitcoinBitcoin (BTC) $ 36,944.00 3.51%
  • bitcoinBitcoin (BTC) $ 36,944.00 3.51%
  • bitcoinBitcoin (BTC) $ 36,944.00 3.51%
  • bitcoinBitcoin (BTC) $ 36,944.00 3.51%
  • ethereumEthereum (ETH) $ 1,247.77 8.11%
  • ethereumEthereum (ETH) $ 1,247.77 8.11%
  • ethereumEthereum (ETH) $ 1,247.77 8.11%
  • ethereumEthereum (ETH) $ 1,247.77 8.11%
  • tetherTether (USDT) $ 1.00 0.14%
  • tetherTether (USDT) $ 1.00 0.14%
  • tetherTether (USDT) $ 1.00 0.14%
  • tetherTether (USDT) $ 1.00 0.14%
  • bitcoin-cashBitcoin Cash (BCH) $ 500.17 4.85%
  • bitcoin-cashBitcoin Cash (BCH) $ 500.17 4.85%
  • bitcoin-cashBitcoin Cash (BCH) $ 500.17 4.85%
  • bitcoin-cashBitcoin Cash (BCH) $ 500.17 4.85%
  • binancecoinBinance Coin (BNB) $ 43.00 6.36%
  • binancecoinBinance Coin (BNB) $ 43.00 6.36%
  • binancecoinBinance Coin (BNB) $ 43.00 6.36%
  • binancecoinBinance Coin (BNB) $ 43.00 6.36%
Our websites require cookies enabled to provide you with an uninterrupted experience. Please continue without changing your setting to receive important notifications.I Agree