Although Bitcoin (BTC) has an uncorrelated nature with oil, but the crypto market has not gone into any unfavorable moves. But when it comes to the digital asset mining, oil prices might be good news.
The U.S. oil futures contracts for May delivery slipped due to storage problems earlier this month, on April 20. The oil price quickly fell below zero and a significant round of fear, uncertainty, and doubt (FUD) on the market as well as on other commodities followed.
With the significant drop in oil prices, many oil producers wanted people to buy into the assets but there were lots of oil shipping containers left unused.
This has resulted in significant oil availability which has brought the price down to a very low level. With the asset price suddenly plummeting, many are discussing the potential it might have a positive impact on bitcoin mining. It all stemmed from the words of Andreas Antonopoulos, a well-known advocate for bitcoin, and analyst.
Antonopoulos said the following in a recent ask me anything session:
“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, surprisingly enough, because they’re going to have to compete and operates with the loss, at least temporarily.”
What is highlighted by AMB Crypto, the price of electricity will drop internationally as a result of the crash due to the fundamental principle behind the distribution of electricity.
Binance, the world’s largest crypto currency exchange, announced plans to launch its own Bitcoin (BTC) mining pool, which will be the first for the popular crypto exchange. The Russian crypto news publication Coinlife broke the news on Tuesday and was later confirmed by three sources in the mining business. Binance CEO Changpeng Zhao tweeted Wednesday about the pool.