From Zero to Hero: Oil Prices. Is Bitcoin on its Way? Put an end to the Crypto Winter phenomenon!

Conclusion

  • Price fluctuations in petroleum are becoming increasingly common.
  • Within two years, it had gone from zero to where it is now.
  • Bitcoin's trajectory may be similar to that of gold.

Oil Price: Oil prices fell to zero two years ago before rising again. Bitcoin prices could rise as the world becomes more unstable. A 'crypto winter' is not something to be concerned about in light of this.

Predictions are becoming increasingly difficult in our increasingly unstable world, and every scenario brings its own set of surprises. Let's look at oil prices and see how they compare to the volatility of the Bitcoin price.

From "Zero" to "Hero," the oil price

As 2020 began, oil's price actually fell below zero, and is now in the red. Everyone has been taken aback by the wild swings in oil prices.

Unexpected events have a constant effect on the world. The pandemic's arrival had no impact on oil prices. War broke out unexpectedly, causing oil prices to rise sharply while many other assets fell in value.

As a result, it can be said that the current state of the world is weakening economic theories and models of the future. @scottmelker (The Wolf Of All Street) agreed, tweeting:

"The state of the world is bleak." The economy is shaky. However, I'm seeing a lot of panic, fake news, bad takes, and overreactions to the current situation based on assumptions about what might happen. This is worrying. It's fine to be prepared. But keep in mind that nobody knows what will happen next, so keep your cool.

Were any of us expecting the price of oil to drop to zero at the time? It's also possible that oil prices could hit a new high in two years. That could not have been predicted using any type of predictive analytics or algorithm.

bitcoin and oil

What about Bitcoin?

People who argue that Bitcoin is an unstable asset should look at the price of oil.

It's important to remember that the underlying philosophy that gave rise to Bitcoin has been around for over a decade. "Bitcoin (BTC) is the mathematical version of gold," Apple co-founder Steve Wozniak recently said."

In an increasingly unstable world, will people's faith in the banking system and centralized government remain stable? If another "Black Swan" event occurs that causes the public to abandon gold in favor of Bitcoin, no one can deny it.

Let's say the unthinkable happens, and everyone is scrambling to find safe havens for their money in the face of an impending World War 3 (which no one wants to happen).

There are plenty of "black swans" in the world, so anything is possible.

It's not just about the price of Bitcoin that genuine Bitcoin holders will hold on to; they will also hold on to the Bitcoin's core philosophy.

We'll keep an eye on things.

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