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

1 answers

• RATATAJun 06, 2023 · 2 years ago
  The spot price of natural gas affects the value of digital currencies because it influences the cost of mining. Higher natural gas prices mean higher energy costs for miners, which can reduce their profit margins. This can lead to a decrease in the supply of newly minted digital currencies, which can drive up their value. Conversely, lower natural gas prices can make mining more profitable and potentially increase the supply of digital currencies. So, the spot price of natural gas indirectly impacts the value of digital currencies through its effect on mining costs.
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