Extracting Venezuelan Oil Could Reduce Bitcoin Mining Costs: Bitfinex

Analysts at crypto exchange Bitfinex suggest that if US companies begin extracting Venezuela's vast crude oil reserves, the resulting cheaper and more abundant energy could significantly improve profit margins for Bitcoin miners globally and potentially spur new mining expansion.

The intervention, following the expected capture of President Nicolás Maduro, could have immediate energy market effects, though only a fraction of Venezuela's 303 billion barrels would need tapping to impact prices meaningfully. This relief is needed as miners face squeezed profitability due to Bitcoin's price drop, rising difficulty, and increasing electricity costs.

However, Bitfinex noted that any substantial increase in Venezuelan output would take years, depending on the political transition and lingering sanctions. Another analyst estimated it could take a decade and over $100 billion in investment to restore Venezuela to its former production powerhouse status. While crude oil prices saw a marginal drop following the intervention, Bitfinex believes the broader crypto market will be driven more by macro risk appetite than energy fundamentals.

(Source：Cointelegraph)