For high-energy mining operations, any step toward cheaper electricity is a move toward long-term sustainability
Bitfinex analysts suggest that US efforts to tap into Venezuela’s massive oil reserves could lead to a significant drop in electricity costs for Bitcoin miners. By securing access to these vast resources, the energy market may see a shift toward more affordable and abundant power. This change would be a welcome relief for miners currently struggling with high overhead and declining profit margins.
The move follows a period of intense geopolitical activity, including the recent capture of the Venezuelan president and the seizure of oil tankers. While Chevron is already active in the region, the U.S. administration is reportedly pushing for more major energy companies to begin extraction. Analysts believe that even using a small portion of Venezuela’s 303 billion barrels could be enough to lower global energy prices.
Despite the optimistic outlook for energy costs, experts warn that restoring Venezuela’s infrastructure will not happen overnight. The country’s oil production has fallen from 3.5 million barrels per day in the 1970s to just 1 million today. It could take up to a decade and over $100 billion in investment to turn the nation back into a global energy powerhouse.
For now, the impact on the cryptocurrency market remains indirect. While crude oil prices have already dipped toward $58 per barrel following recent interventions, Bitcoin’s value continues to be shaped more by broader economic trends and investor appetite.
