US, WASHINGTON (ORDO NEWS) — Genesis Mining Service Operations Director Philip Salter is convinced that the deepening economic crisis will increase the popularity of Bitcoin as a tool for hedging the risks of the banking system and increase the value of cryptocurrencies. It is reported by Cointelegraph.
“If the economic crisis can be prevented, there will be no major changes with Bitcoin. However, if a real crash happens, interest in the first cryptocurrency will skyrocket, as it will be seen as a hedging tool against the risks of the banking system. The more skepticism about the old economy, the more interest in bitcoin,” the manager of the popular cloud mining service shared his thoughts.
Discussing the short-term prospects of the industry with the publication, the expert agreed that miners played a key role in the recent market crash . In this regard, he stated the following:
“All this is no different from traditional markets – you have to sell everything to pay off debts and continue working. Miners must pay for electricity, cover other operating costs. Since your expenses are denominated in dollars, you need to sell more falling bitcoins in order to continue operations”
Thus, during periods of rapid market decline, the pressure on the supply of bitcoin from miners can increase like a snowball, which inevitably pushes the price lower and lower. However, at some point, miners can simply turn off the equipment until the price recovers to breakeven.
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