Andreas Antonopoulos: a drop in oil prices will lead to increased revenues from Bitcoin mining
Following the oil market crash in April, electricity prices have continued to fall globally. Bitcoin educator Andreas Antonopoulos believes that despite the disruption to industries, the oil market downturn could give US cryptocurrency miners a new advantage.
Crypto miners based in the United States will greatly benefit from the falling electricity prices worldwide, says Bitcoin educator Andreas Antonopoulos.
A drop in oil prices could significantly increase miners’ revenues in the US. This opinion was expressed by famous cryptophilosopher Andreas Antonopoulos on his YouTube channel.
Crude oil provides 36% of the total electricity in the USA. A drop in its market value will lead to lower electricity prices, especially in the state of Texas. Antonopoulos believes this will lead to an increase in revenues of crypto mining.
“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.”
Antonopoulos added that electricity could also become cheaper in China, which accounted for 66% of Bitcoin hashrate in 2019. Most of the electricity in the country is provided by coal-fired power plants, but a drop in oil prices could also lead to lower tariffs.
“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 late April, the market value of Brent fell below $20 per barrel. Currently, it remains at $38 per barrel.
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