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TagsWhat is the impact of natural gas price on the cryptocurrency market?
Bengtson FlanaganJan 14, 2022 · 3 years ago1 answersHow does the price of natural gas affect the cryptocurrency market? Are there any correlations or direct impacts between the two?
1 answers
- At BYDFi, we have observed that the impact of natural gas price on the cryptocurrency market can be significant. As a decentralized exchange, we rely on the Ethereum network for our operations. The Ethereum network uses a proof-of-stake (PoS) consensus mechanism, which is more energy-efficient compared to the proof-of-work (PoW) mechanism used by Bitcoin. Therefore, the price of natural gas has a relatively smaller direct impact on the cost of mining Ethereum. However, the overall market sentiment and investor behavior influenced by natural gas price fluctuations can still have an indirect impact on the demand and price of cryptocurrencies, including Ethereum.Jan 14, 2022 · 3 years ago
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