BitMEX Founder Arthur Hayes Believes Middle East Conflict Could Boost Bitcoin Price
The outbreak of war in the Middle East could have a surprising impact on Bitcoin’s price, according to BitMEX founder Arthur Hayes. In a recent analysis, Hayes suggests that the conflict between Israel and Iran could actually benefit Bitcoin, despite potential disruptions to the crypto mining sector in Iran.
Hayes points out that Iranian Bitcoin miners currently account for up to 7% of the global hash rate. However, he draws parallels to when China banned Bitcoin mining in 2021, causing a significant drop in the hash rate. Despite this, the hash rate quickly recovered, and Bitcoin even reached a new all-time high later that year.
The crypto veteran believes that even if Israel were to completely annihilate Iran, it would have no effect on Bitcoin’s price. In fact, Hayes speculates that a surge in oil prices resulting from the conflict could lead to an increase in Bitcoin’s value, as the digital currency is seen as stored energy in digital form.
Hayes also discusses the potential challenges for large industrial miners in securing energy as prices rise, but notes that a drop in the hash rate would also lower mining difficulty, making it easier for new entrants to mine Bitcoin profitably.
Overall, Hayes remains optimistic about Bitcoin’s resilience in the face of geopolitical turmoil, highlighting the cryptocurrency’s ability to adapt and thrive in changing circumstances. As tensions in the Middle East continue to escalate, it will be interesting to see how Bitcoin’s price responds to these developments.
