Arthur Hayes, the co-founder of BitMEX, suggests that ongoing conflicts in the Middle East may positively impact Bitcoin‘s market value. He highlights Iran’s significant involvement in Bitcoin mining, which could play a critical role during this period of unrest.
How Does Iran Affect Bitcoin Mining?
In his assessment, Hayes examined the potential repercussions of the escalating tensions between Israel and Iran on the cryptocurrency market. He pointed out that Iranian miners account for about 7% of the global hash rate, emphasizing the substantial influence of Iran’s mining activities.
What is the Link Between Oil Prices and Bitcoin?
Hayes noted that should Israel target Iran’s oil infrastructure, it could lead to a surge in oil prices, which may subsequently elevate Bitcoin’s value. He remarked that as energy costs rise, Bitcoin, as a form of stored energy, would likely gain against traditional currencies. He explained that if energy prices increase, Bitcoin’s worth in relation to fiat money is expected to follow suit.
– Bitcoin mining poses resilience amid rising energy costs.
– Iranian miners significantly contribute to the global hash rate.
– Increased oil prices could lead to higher Bitcoin valuations.
– Historical resilience of Bitcoin’s hash rate during regulatory challenges indicates potential robustness.
The analysis sheds light on how geopolitical tensions can shape the cryptocurrency landscape, potentially positioning Bitcoin as a more attractive asset as energy prices fluctuate. This perspective may aid investors in making more strategic choices in an unpredictable market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/could-conflict-in-the-middle-east-raise-bitcoin-prices