Philip Salter, the operating officer of Genesis Mining, believes that economic crisis may give a powerful push for Bitcoin growth.
For previous weeks the cryptocurrency market has been heavily storming, and according to Salter, and mining companies could have participated in BTC price crashing:
“In this case there is no difference from traditional markets — you sell everything possible just to stay afloat and pay your debts. Miners always have bills to pay. They must pay for electricity, for maintaining performance, and all these bills come in US dollar (USD). And if Bitcoin rate falls, this means that miners will sell more BTC to keep on working”.
In such a way, we have an avalanche effect — the lower rate is, the larger number of bitcoins miners sell, what leads to further rate`s declining. And the situation is going on till the moment, when for a miner it is easier and cheaper to suspend work until market recovery.
However, Salter thinks that the more real and deeper economic crisis is, the better it is for the first cryptocurrency.
“If this crisis is artificial, this will not seriously affect Bitcoin. But, if it is real global economic crisis, the interest in Bitcoin will greatly increase. It will again become a risk hedging tool. The worse people feel about the traditional financial system, the better they will treat cryptocurrencies”, — Philip Salter claimed.