Bitcoin: how oil could blow up prices

Black Gold and Gold 2.0 – In a conflicted world where resources are becoming scarce, our dear Bitcoin (BTC) could attract a lot of covetous interest. In any case, this is the opinion of Arthur Hayes, cofounder and ex-CEO of the crypto-stock exchange BitMEX. For him, an oil/energy crisis would play clearly in favour of the king of cryptocurrencies.

Bitcoin Going “To The Moon” Thanks To Oil Tensions?

Satoshi Nakamoto designed his invention, Bitcoinin the ashes of the economic crisis of 2008. With this peer-to-peer digital payments network, they wanted to offer the world an alternative to the financial system aging and bankers.

In a recent publication on his blog, Arthur Hayesthe former boss of BitMEXbelieves that Bitcoin would have a big role to play in a potential oil crisis coming. The co-founder of the crypto exchange first explains 3 scenarios possibilities that make him think that there will be strong tensions on the highly strategic resource that is oil:

” 1. Israel and/or Saudi Arabia decide to bomb a piece of critical infrastructure in Iran, and Iran ultimately decides to escalate the situation by closing the Strait of Hormuz;
2. Russia, Saudi Arabia and/or other major oil producers decide to significantly reduce their oil production;
3. Critical refineries and/or oil and gas pipelines are taken out of service as a result of deliberate sabotage. (This has already happened for the vital Nord Stream I and II gas pipelines between Russia and Germany). »

Excerpt from Arthur Hayes’ analysis – Source: cryptohayes.medium.com

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A price of BTC that explodes along with inflation and the cost of energy

In this imagined context of scarcity and rising oil prices (and more generally, energy), Arthur Hayes is convinced that Bitcoin would be a refuge in front of galloping inflation fiduciary currencies (dollar, euro, etc.). In particular by his fixed quantity of 21 million of units.

“As the strongest form of money ever created, Bitcoin will likely react positively to an easing in global monetary conditions. [ndlr : assouplissement = impression monétaire]. As the amount of fiat money [imprimée] parallel increases inflation for the plebs of the world, monetary instruments with a fixed supply – like Bitcoin – become, by definition, more valuable in terms of fiat money. »

Bitcoin’s rise could even be so large that the crypto-asset could “decorrelate” positively from the corporate stock market, according to Arthur Hayes. Because Bitcoin “proven to increase energy purchasing power over time”.

After the multiple crises in the crypto sector in 2022will the years 2023 and 2024 mark the big comeback of Bitcoin? One thing is certain, the stability of the world and the energy supply are more than precarious. Cryptocurrencies could actually do well.

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