Topic: Should the Crypto Community Be Worried About the Oil Crash? (Read 422 times)
No, because the price of oil can't affect crypto in any way.
There can be no special connection between oil and bitcoin. The previous big drop in oil prices occurred long before the birth of Bitcoin. And the fault was not at all economic problems, but big politics. And now everything revolves around this.
Why have to worried about the oil crash for bitcoin price, not connected with oil have higher or lower price for bitcoin. When on the top price they are not waiting will oil have higher price too. Different method and system between oil and bitcoin, just investor take care with bitcoin how will going on.
As far as the market is concerned it looks like Bitcoin is not really affected by the oil crashed. But the sudden crash could impact positive and negative effects. On positive side yes we can buy cheaper oil but on negative side if prices don’t recover a lot of oil companies will begin to shut down and slowly affecting businesses.
Right now I think this is a very good question to be asking. My answer to this question as a financial guy by trade, is yes, oil could certainly be something the cryptocurrency community could or should be worried about. The reason being is pretty simple. Often there are times in the financial markets where Oil is a leading indicator of how stocks will bounce (whether up or down). Back in roughly 2016 seemingly every day the markets would flow regardless of all else, exactly on the news of Oil it's self. Love it or hate the cryptocurrency market is often effected by the price of stocks and the markets themselves. Just take a look at the past year and it's easy to see this trend. With the halving coming up, I'm really hoping for stable stock markets (which are right not closely related to oil markets).
Hello, guys! What do you think? Can crypto and the oil industry be connected?
The world saw the biggest oil market crash in history recently and i don't think it's because of crypto currency cause personally i don't think crypto and oil industry are connected. Here you can find clearly what is the main reason for oil market fall. Not just oil market, every single marketplace are down right now and there is the only one reason and that is COVID-19. And as i mentioned before because both industry are not connected so there is nothing to panic about it.
There's no direct connection for these two cryptocurrencies and oil are two different markets but may affect each other during this crisis.
Lower oil price would be an advantage to everyone as it can also lower the price of all commodities and services that may give us enough savings that we can invest into cryptocurrency but as soon as we experience the need and shortage of money after the prices went up again because on the increase in the oil's price then we will start pulling out are investments in cryptocurrency to buy what we need.
Right now, since the price of oil is still low and people don't spend enough for leisure cryptocurrency was able to recover fast after the downfall a few months ago. It like an ecosystem where there might be no direct connection to each species but the cycle affects all entities in that society.
Lower oil price would be an advantage to everyone as it can also lower the price of all commodities and services that may give us enough savings that we can invest into cryptocurrency but as soon as we experience the need and shortage of money after the prices went up again because on the increase in the oil's price then we will start pulling out are investments in cryptocurrency to buy what we need.
Right now, since the price of oil is still low and people don't spend enough for leisure cryptocurrency was able to recover fast after the downfall a few months ago. It like an ecosystem where there might be no direct connection to each species but the cycle affects all entities in that society.
Hello, guys! What do you think? Can crypto and the oil industry be connected?
If I am not mistaken they are very different and are not connected to each other but if you are going to say stock market then they are related to each other. Crypto market can easily incraese or decrease it's price base on demand and most of the demand are coming from the big whales therefore if the oil price will crash it cannot affect the demand of crypto market. But a pandemic scenario is separate as the market crashes pretty bad in the midst of pandemic where many countries impose a total lockdown in their area. Therefore oil crash cannot affect that much compare to pandemic scenario so as a crypto lover you don't have to worry that much if in case the oil prices will goes down as it is not the basis whether the crypto market will goes down or not.
Hello, guys! What do you think? Can crypto and the oil industry be connected?
No.The oil price crash is caused by a trade war between Saudi Arabia and Russia.They just can't negotiate a reduction of their oil production.If they manage the reduce the oil production,the oil prices will go up.This is a temporary situation.And no,cryptocurrency markets have nothing to do with oil prices.I don't think the crypto community should be worried about the oil market.Having lower oil prices is usually good for most countries that mostly import oil and for the global economy in general.
They are the huge countries who are holding huge stock of oils in the world, their production is really high compared to other countries. Also, Saudi Arabia and Russia are not that affected by the virus and they can still produce oil whenever they want. Too much production of oil results to a decrease in demand of the oil, most especially that the quarantine all around the world are still active. That's why the oil's price in the market becomes very cheap because the only industries that uses oil those who are manipulating a factory of goods for the people, households, and limited vehicle. Some cryptocurrency are used to buy oil with the bigger company and I think that there's somehow correlation between the cryptocommunity and oil's price.
It is connected.
Not to all of the users obviously but for those people that have a job that is related to oil and cryptocurrencies mainly the miners. In the past weeks, I thought that the pandemic would not affect the price of Bitcoin at all but there are ways that it can be affected like this one. It is not directly an effect but still, it is a ripple effect, as they say it.
Not to all of the users obviously but for those people that have a job that is related to oil and cryptocurrencies mainly the miners. In the past weeks, I thought that the pandemic would not affect the price of Bitcoin at all but there are ways that it can be affected like this one. It is not directly an effect but still, it is a ripple effect, as they say it.
Hello everybody. I agree with those who argue that these are completely unrelated things, moreover, today cryptocurrency is a vivid illustration of exchange speculation. Waiting and observing is the best statement. The fall in oil prices was the result of inconsistency in the actions of the main countries that produce oil. Sooner or later, they will agree anyway and the price will fly up. I'm not sure that this will somehow affect the movement of the price of cryptocurrencies. Yes, both cryptocurrency and oil are both participants in exchange speculation, but at the same time, there are two multidirectional participants.
Bitcoin already decoupled from oil or stocks since its recent flash crash in fact when oil or stock market was crashing this past weeks. Bitcoin had a little price movement because the weak investors was shaken off since the last major dump in april 1st.
Im expecting for Bitcoin to grow upwards and benefit from this financial crisis, if it manage to hold this week's green candle bar.
Im expecting for Bitcoin to grow upwards and benefit from this financial crisis, if it manage to hold this week's green candle bar.
The impact of the oil crash will at least only occur at the beginning because of the panic that is bound to occur but at a time like this, we also cannot really assume that the decrease that occurs simultaneously with the oil crash has a strong connection, because even after a few days passed as we know recently the crypto market got a big pump and with that incident also at least proved that the two did not have the strong connection that was feared.
Tbh I don't see oil crash doing anything bad for crypto. There are certain sied factors at play, but they are, again, pretty quickly-reversible as opposed to oil situation
Yeah, It was just an hour that oil price has become zero market value. May it shocked the world market and the people who are seeing but not in the crypto community. We are not correlated to the market outside, in fact, we are having in different trend base of what we experience today and even before. And have to think that makes us feel the drop? It can be but not that big enough to drag the market down. 
Supply still will shrink after a few months,
the only way that supply could shrink is if we were burning bitcoins, which we aren't. otherwise it constantly increases but since there is a cap the rise will end at some point. the only thing that "shrinks" or more precisely halves is the speed of creation of new coins.
I agree that the direct reason for Bitcoin dropping from $9k to $5k was panic selling. However, there is a cause of panic selling as well, and it is Covid-19 becoming a pandemic (or, rather, how serious and scary it all became in the media when the WHO made the announcement). Another thing I want to address is you referring to 11 years without Bitcoin being affected by any other market. The thing is, the last World economic crisis was before Bitcoin was created, and the last pandemic was not occurring in the media era plus Bitcoin was in its early days back then. So I'd say that the current situation is the one Bitcoin never experienced before, so what never happened before might well happen now.
Short term wise, it still works as before, such kind of price drop is common in bitcoin's history, and has not reached 90% as it used to do. But long term wise, it is unclear at current stage
IMO, since cryptocurrency always goes online, and internet is not disrupted, so this whole ecosystem has not been affected. Supply still will shrink after a few months, but demand might drop a bit due to that people are chasing USD right now. But because of measures like curfew, people will stay at home more, thus go online more
QE infinite will provide unlimited USD, but the question is wether those liquidity will enter crypto market and how. USDT is also in a QE phase, maybe that is the reason this time it stopped the price drop, this is the most interesting development right now comparing with the last several market downturn: Now we also have a QE to save the market, how ironic
ask yourself this:
for the past 11 years do you know of even one case where bitcoin price was affected from any other market crashing or pumping? the answer is simply no. and 11 years is not a small time either. if bitcoin were to be affected by any of them then it should have shown something so far but it has never done that.
so why should things change now?!!
the only explanation i have for the current market state is a lot of panic sells with a strong manipulation.
I agree that the direct reason for Bitcoin dropping from $9k to $5k was panic selling. However, there is a cause of panic selling as well, and it is Covid-19 becoming a pandemic (or, rather, how serious and scary it all became in the media when the WHO made the announcement). Another thing I want to address is you referring to 11 years without Bitcoin being affected by any other market. The thing is, the last World economic crisis was before Bitcoin was created, and the last pandemic was not occurring in the media era plus Bitcoin was in its early days back then. So I'd say that the current situation is the one Bitcoin never experienced before, so what never happened before might well happen now. for the past 11 years do you know of even one case where bitcoin price was affected from any other market crashing or pumping? the answer is simply no. and 11 years is not a small time either. if bitcoin were to be affected by any of them then it should have shown something so far but it has never done that.
so why should things change now?!!
the only explanation i have for the current market state is a lot of panic sells with a strong manipulation.
Depends on where you live and how oil is part of your economy. I'll give you 2 scenarios:
1. Brunei.
- Oil price fixed at 53 brunei cents (currently about $0.37) since 1983. That's also the highest quality petrol you can get. You get cheaper fuel if you want.
- 0 taxable income.
- Oil is virtually all of state revenue
- welfare state, pensions, free healthcare, free education till University (actually you even get a student allowance and get sent abroad)
Since oil started crashing around 2014 (thereabouts, can't remember) state's been cutting down on benefits. Fewer scholarships, fewer trips outside, more strict welfare rules. It affects all Bruneians.
2. Malaysia
- Oil price subsidised by govt, floating price since the noughties
- One of the highest taxable income in the region.
- Oil is a majority but not all of state revenue
- hugely increasing foreign debt since the noughties
Govt complains of less and less revenue thanks to oil price, but people are happier as petrol has never been cheaper. Petrol price has a huge knockon effect for the consumer. Food gets more expensive. Public transport too. Regular Malaysians are happier now. Rich Malaysians not so.
1. Brunei.
- Oil price fixed at 53 brunei cents (currently about $0.37) since 1983. That's also the highest quality petrol you can get. You get cheaper fuel if you want.
- 0 taxable income.
- Oil is virtually all of state revenue
- welfare state, pensions, free healthcare, free education till University (actually you even get a student allowance and get sent abroad)
Since oil started crashing around 2014 (thereabouts, can't remember) state's been cutting down on benefits. Fewer scholarships, fewer trips outside, more strict welfare rules. It affects all Bruneians.
2. Malaysia
- Oil price subsidised by govt, floating price since the noughties
- One of the highest taxable income in the region.
- Oil is a majority but not all of state revenue
- hugely increasing foreign debt since the noughties
Govt complains of less and less revenue thanks to oil price, but people are happier as petrol has never been cheaper. Petrol price has a huge knockon effect for the consumer. Food gets more expensive. Public transport too. Regular Malaysians are happier now. Rich Malaysians not so.
I think that cryptocurrency owners should not worry too much about lowering oil prices. Everything in the economy is interconnected, so there may be certain consequences for cryptocurrency, however, I do not see a direct relationship between the price of cryptocurrency and the level of oil production. The problem so far has been outlined in Russia due to the fact that the cost of oil production there is much higher than in Saudi Arabia. Putin is used to showing his toughness and strength, but this is not the situation where it was worth doing. I am pleased to see how in this situation Putin loses. He too imagined his leadership abilities and it would be a cold shower for him. And it’s time for the people of Russia to understand that they are led by an ordinary adventurer and war criminal.
In the future, the oil price will nevertheless decline, since the states, and in particular, the states of Europe, intend to gradually switch to alternative energy sources.
In the future, the oil price will nevertheless decline, since the states, and in particular, the states of Europe, intend to gradually switch to alternative energy sources.
Hello, guys! What do you think? Can crypto and the oil industry be connected?
Yeah it has gave, a few days ago when the oil price had decreased we found a lot of panic seller for bitcoin, so it is price had decreased for almost 12%.But we don't have any worried about that because it might take a few times. Before the decreased came we have a good news, the government of france has considered that bitcoin is money and we can also see some good information who come from several countries.
As you can see now bitcoin price has been increasing again, I believe we will touch $9000 again in a few days ahead. So, you can save your worried now and focus against your investment in bitcoin again. If you sold your bitcoin when the crash came you need to buy it again before you late.
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