- The expert believes that low oil prices are beneficial for US miners.
- Chinese miners may also feel a positive effect on their bottom line.
A substantial decrease in oil prices is a nightmare for oil companies and a blessing for cryptocurrency miners, according to a famous crypto philosophy prophet Andreas Antonopoulos.
Oil provides 36% of the total US electricity. It means that the decrease in its market price will result in lower electricity prices especially in Texas. Antonopoulos said recently on his YouTube channel. He also added that in this situation will turn cryptocurrency mining into a profitable business.
One of the biggest new mining operations opened in the United States, in the state of Texas. I can’t imagine that this is a coincidence. It probably had a lot to do with the fact that the US had 12,000 barrels per day, and it is the largest oil producer in the world because of fracking. Therefore, there may be really good opportunities for cheap power. This could suddenly make the US-based miners much, much more competitive and powerful, he said
Antonopoulos also added that electricity may become cheaper in China, which accounted for 66% of the bitcoin hash rate in 2019/ The electricity in the country is produced mainly by coal plants, but the oil price collapse may serve as a catalyst for a coal price reduction as well.
Also, China recently launched reform in Sichuan to stimulate Bitcoin mining activity. Namely, the region planned to use hydropower resources to reduce the cost of mining.
In late April, the market value of Brent crude fell below $ 20 per barrel. Currently, a barrel of Brent is trading at $38.