How does the natural gas price affect the value of digital currencies?

1 answers

• Armancio OrtegaJun 10, 2024 · a year ago
  The natural gas price has a direct influence on the value of digital currencies. When the price of natural gas rises, it increases the cost of mining digital currencies. This can lead to a decrease in mining activity, which reduces the supply of new coins in the market. With a limited supply, the value of digital currencies may increase. Conversely, if the natural gas price drops, mining becomes more profitable, resulting in increased mining activity and potentially a higher supply of digital currencies. This increased supply can put downward pressure on the value of digital currencies. Therefore, the natural gas price can significantly affect the value of digital currencies.
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