US access to Venezuelan oil could eventually lower Bitcoin mining costs, Bitfinex says

Bitcoin mining electricity costs could fall if Venezuelan oil production increases, though it may take several years before the benefits are fully realized, Bitfinex analysts say.

US companies moving into Venezuela to extract the country’s enormous crude oil reserves could lower electricity prices for Bitcoin miners and improve their profitability margins, analysts at crypto exchange Bitfinex said.

“Cheaper and more abundant energy would improve miner margins globally and could unlock a new phase of mining expansion, particularly in regions able to secure long-term power contracts,” the Bitfinex analysts said in a note on Monday.

The US started seizing Venezuelan oil tankers in December, and it is expected to start extracting Venezuela’s 303 billion barrels worth of crude oil reserves after capturing Venezuelan President Nicolás Maduro on Saturday.

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