Bitcoin’s Price Could Benefit from Middle East Conflict
Arthur Hayes, the founder of BitMEX, believes that the ongoing conflict in the Middle East could actually be good news for Bitcoin. He thinks the war could lead to a surge in Bitcoin’s price.
Iran’s Mining Impact
Hayes points out that Iranian Bitcoin miners contribute about 7% of the global mining power. He argues that even if Israel’s attacks destroy Iran’s mining infrastructure, it won’t significantly impact Bitcoin’s price. He cites the example of China’s ban on Bitcoin mining in 2021, which led to a temporary drop in mining power but didn’t affect Bitcoin’s price in the long run.
Oil Prices and Bitcoin
Hayes also believes that the conflict could lead to higher oil prices, which would also benefit Bitcoin. He explains that Bitcoin is essentially “stored energy in digital form,” so rising energy prices would make Bitcoin more valuable in terms of traditional currencies.
Mining Difficulty and New Entrants
While higher energy prices could make it harder for some large mining operations, Hayes believes it would also make it easier for new miners to enter the market. He argues that a drop in mining power would also lead to a decrease in mining difficulty, making it more profitable for new miners to join.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
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