Experts analyze bitcoin’s capacity in the face of falling oil
A 300% drop in crude oil caught the attention of analysts and investors around the world
This Monday, April 20, the price of a barrel of oil suffered a historic drop in the oil market when, for first time, the future values of the reference US crude West Texas Intermediate (WTI) fell below US $ 0 yielding negative balances of -US $ 37.63, a figure that represents the collapse of 305.97% in a span of 24 hours.
According to the explanation of some media, the historical fall would be reflected in the decrease in demand and the saturation of deposits. This situation is also aggravated due to difficulties in storing surplus product. Simply put, the world has more oil than it can store and use.
During an interview, the host of the Keizer Report program commented that due to the lack of demand for oil due to the pandemic, there will probably be more cuts by oil producers. “The world is experiencing a paradigm shift away from oil, because of what the historical maximums that we have seen in the price could never return.”
Can Bitcoin be an alternative asset?
Through his social networks, Keizer took advantage of the collapse of the oil barrel to re-transmit his confidence to bitcoin. “Negative interest rates mean that time is worth less than zero. Negative oil prices mean that space is worth less than zero. When both space and time are negative it means that we have crossed the event horizon towards hyperbitcoinization. This is the end of fiat money.”
For his part, Cameron Winklevoss, co-founder of the Gemini exchange and one of the popular Winkevoss brothers, commented on his Twitter that “after today, oil can no longer be considered a reliable store of value. Their next best options are the US dollar (gulp), gold (scarce), or bitcoin (fixed)”.
K.Villarroel
Source: Diariobitcoin
