- Andreas Antonopoulos has recently so that he can see the recent downturn in oil prices as a net positive for crypto miners on a global scale.
- Speaking at the end of last week, he posted a video where he said that the oil prices could have a positive effect for miners by providing cheaper electricity.
The well-known advocate for the leading cryptocurrency, Andreas Antonopoulos has recently so that he can see the recent downturn in oil prices as a net positive for crypto miners on a global scale. Speaking at the end of last week on the 27th of May, he posted a video to his YouTube channel where he said that the collapsing oil prices could have a big positive effect for crypto miners by providing cheaper electricity internationally but it wouldn’t be equal worldwide.
For miners based in the United States, they will be able to reap the rewards of these cheaper costs more efficiently. In the US, there is about 36% of his energy coming from petroleum and the Bitmain mining facility in Texas will have a big positive effect according to Antonopoulos.
One of the biggest new mining operations opened in the United States in the state of Texas and I can’t imagine that that is a coincidence… it probably had a lot to do with the fact that the U.S. had 12,000 barrels per day. It is the largest oil producer in the world because of fracking. Therefore, there may be really good opportunities for cheap power, which would suddenly make U.S.-based miners much, much more competitive and profitable.
He further said that the falling oil prices still have a benefit for miners in China and added that energy producers are not relying on petroleum. This could push them to stay competitive by operating at a loss again, resulting in cheaper electricity for this area of the industry as the price of oil decreases.
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…
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
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