Which cryptocurrencies are most affected by changes in natural gas futures prices?

3 answers

• Dec 18, 2021 · 3 years ago
  When it comes to the impact of natural gas futures prices on cryptocurrencies, Bitcoin and Ethereum are the two most prominent digital assets affected. As natural gas is a major source of energy for mining operations, changes in its price can significantly influence the cost of mining these cryptocurrencies. Higher natural gas prices can lead to increased mining expenses, potentially affecting the profitability and value of Bitcoin and Ethereum. Additionally, the environmental concerns associated with natural gas extraction and usage can also impact the reputation and adoption of these cryptocurrencies.
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• Dec 18, 2021 · 3 years ago
  The relationship between natural gas futures prices and cryptocurrencies is not limited to Bitcoin and Ethereum. Other digital assets, such as Cardano, Solana, and Polkadot, can also be influenced by changes in natural gas prices. These cryptocurrencies rely on energy-intensive consensus mechanisms, such as proof-of-stake or proof-of-authority, which require significant computing power. As natural gas is a key energy source, its price fluctuations can affect the cost of running and securing these networks, potentially impacting the value and performance of these digital assets.
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• Dec 18, 2021 · 3 years ago
  According to a recent analysis by BYDFi, a leading cryptocurrency exchange, the most affected cryptocurrencies by changes in natural gas futures prices are Bitcoin, Ethereum, and Binance Coin. The study found that these digital assets have a strong correlation with natural gas prices due to their high energy consumption for mining and transaction processing. As natural gas becomes more expensive, the cost of mining and transacting with these cryptocurrencies increases, potentially affecting their market value. However, it's important to note that the impact of natural gas futures on cryptocurrencies is complex and can be influenced by various other factors, such as market sentiment and regulatory developments.
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