Bitcoin educator Andreas Antonopoulos has reportedly shared that the value decrease of oil could create a positive impact for crypto miners globally, specifically for the ones at Texas-based Bitmain mining farm.
As disclosed via his Youtube video “Down the Rabbit Hole” publicly posted on May 27th, Antonopoulos reportedly claimed that crypto miners can take advantage of the value decline of oil, which comes with a electricity powered offered at a lower cost, but “not equally worldwide.”
Specifically, miners operating in Texas, US – with petroleum accounted for 36% of its energy – will be beneficial from the drop in electricity price.
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 further revealed that, despite a majority of China-based miners employed coal plants-powered rigs, the oil price reduction would reportedly still provide an edge to them, financially, where energy producers not depending on petroleum can still function at a loss, consequently generating electricity at a lowered cost for miners.
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…