The US reference oil barrel fell to unprecedented levels on Monday. In this sense, some experts comment on the slump in the oil price.
The WTI suffered a historic collapse of 305% on Monday due to the coronavirus pandemic that led to the collapse of the crude oil today.
In this sense, some specialists appreciate this.
Jorge Piñón, an expert on energy issues, comments on the oil price
Jorge Piñón, an energy expert at the University of Texas, said that the crisis caused by the expansion of the corona virus is only widening the gap between oil production and consumption worldwide.
“”The problem we have today – and the Achilles’ heel that the hydrocarbon industry has – is not supply. We all know that there is enough oil in the world, the problem is in demand and how it will recover after this crisis.“”
According to the expert, the chaotic discrepancies between oil supply and demand were noticed even before the virus arrived.
This is due to the slowdown reported by the Chinese and Indian economies, which are two of the drivers of international hydrocarbon purchases.
He also affirmed that the situation would later worsen with the global crisis caused by the corona virus, which practically stopped the world economy.
Max Keizer: “Bitcoin doesn’t seem to be such a volatile asset”
For their part, some experts in the crypto market used the collapse of the oil markets to express their opinion about cryptocurrencies. In particular, an expert who decided to compare the price of Bitcoin with that of oil.
Max Keizer used the drop in oil prices to comment on the following: “Bitcoin doesn’t seem to be such a volatile asset”given the sudden crash that the oil market was experiencing. With a decrease of 300% for WTI crude oil.
Keiser used the collapse of the oil barrel via his social networks to pass his trust back on Bitcoin. According to the crypto enthusiast, the current crisis will usher in a new era of digital money.
Mati Greenspan, another crypto expert, was surprised after the falling oil price
Other crypto enthusiasts made similar comments. Based on the opinion of economists and analysts who have suggested that the price of an asset responds to its usefulness or intrinsic value.
Crypto analyst Mati Greenspan, founder of Quantum Economics, was also surprised by the volatile crude oil day. A phenomenon that digital currency users are undoubtedly more familiar with:
“People who write in the cryptocurrency market are already quite used to this phenomenon of saying something about the price, but then volatility makes your theories useless when they reach the public.”
He also pointed out that he had a little fun calculating the oil and BTC ratio on Twitter. But since oil was traded for a penny, it seemed a little useless to keep looking.
The Winklevoss brothers praise Bitcoin for the falling oil price
Likewise, other enthusiasts in the crypto community have used the drop in the oil price as an opportunity to remember Bitcoin’s reach to present an alternative to value preservation.
Cameron Winklevoss, co-founder of the Gemini stock exchange and one of the popular Winkevoss brothers, commented on Twitter:
“”According to today, oil can no longer be viewed as a reliable store of value. Your next best options are the U.S. dollar (sip), gold (scarce), or Bitcoin (fixed).“”
The coronavirus pandemic has caused countries to close effectively. Many governments have put strict measures in the daily lives of billions of people.
It has triggered an unprecedented demand shock in the energy markets as both onshore and offshore storage space is rapidly running out.
Goldman Sachs analysts warned that the coronavirus shock had an extremely negative impact on oil prices.