Arthur Hayes, BitMEX’s founder, believes that the war breaking out in the Middle East will actually boost the price of Bitcoin (BTC).
Hayes has released a new report that outlines the possible outcomes in the crypto-space if tensions between Israel and Iran escalate.
Crypto veteran, Hayes notes that Iranian Bitcoin miner’s account for as much as 7% of global hash rates. Hayes does not believe that Israeli attacks will have any impact on BTC, however.
In only eight months, the hashrate recovered to May 2021’s high. The hash rate increased because miners moved out of China or global players had better economics.
The most important thing to note is that Bitcoin reached a record high in 2021. A severe decline in the network hashing rate did not have any discernible impact on Bitcoin’s price. Even the total destruction of Iran by Israel or the US (which would wipe out up to 7 percent of global hash rates) would not have any effect on Bitcoin .”
Hayes speculates as well that the oil price could rise if conflict escalates and the Middle Eastern oil infrastructure is destroyed. Former BitMEX CEO believes that this would lead to an increase in Bitcoin prices.
Bitcoin is digital energy. If energy prices increase, Bitcoin’s value will rise in fiat currency. The profitability of Bitcoin mining will not change because the energy prices are also going up.
Some large industrial miner may find it more difficult to obtain energy, as utilities canceling contracts at the request of government invoke clauses of force majeure. If the hashrate drops, the difficulty of mining Bitcoin will also drop, making it more profitable for new miners to do so at high energy prices. Our Lord Satoshi’s creation is on display .”
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