THIS IS WHAT US BITCOIN MINERS ARE FACING DUE TO THE OIL CRISIS

 In the United States, bitcoin miners are going through a crisis

The effects and damage of wars are almost always extrapolated to those who have the least to do with those conflicts. In the case of the current war escalation between Russia and Ukraine, Western countries receive collateral damage. An example is the United States, where the price of gasoline has increased as a result of the increase in the cost of a barrel of oil. What is alarming is that electrical energy could also suffer the same effect, which would be detrimental to Bitcoin (BTC) mining.

But what is it due to? To explain it, it is first good to make several clarifications that will help understand why a war that is being fought 9,181 kilometers away could affect Bitcoin mining in North America.

The United States, although it is a producer of crude oil, is also a large importer of oil. In general, this raw material is subject to rises and falls in its price as a result of the basic principle of economics and trade: supply and demand.

Russia is the ninth country that exports the most crude oil to the US, which sent just over 90,000 barrels a day to that country in December, and one of the main – if not the largest – sellers of oil to European countries. These nations, for the most part, rejected the actions of President Vladimir Putin and his invasion of Ukraine and therefore decided not to continue buying oil from the Eurasian nation. The United States did the same thing, which a few days ago banned the import of fossil fuels labeled 'Made in Russia'.

This led to a large demand for oil from the Organization of Petroleum Exporting Countries (OPEC), led by Saudi Arabia, which severely increased the price of crude sold by this association. It is estimated, at the closing of this note, about USD 120 per barrel of OPEC oil on average.

The United States, which is not a member of OPEC, does buy millions and millions of barrels of oil from the organization. For this reason, the North American country, due to the war and for not using its oil reserves, finds itself in the need to invest more to acquire the "black gold" that, among other things, basically supplies the entire North American national industry.