Certainly, these two are worlds apart in terms of the nature of the values they possess. One is a digital asset which is without an inborn or natural value, while the other is an age-long real-life commodity depended on by the entire world.
Bitcoin is the earliest form of cryptocurrency, created in 2009 – right after the infamous global recession. Bitcoin only achieved parity with the US Dollar for the first time in 2011, that’s 11 years ago. Platforms like Offizielle Seite are well known in assisting anyone with how to trade bitcoin.
Oil (majorly crude oil), on the other hand, has been in existence for millions of years and the value has never been in question.
Experts, having looked at the forces that pull and push both commodities, have stated that a lot of mixed results spring out of the demand and supply of these commodities. These are clear laws of economics, although there are some perspectives to it.
How Oil and Bitcoin Respond to Global Demand and Supply
Bitcoin and Ethereum are the biggest and second biggest cryptocurrencies by market cap, transaction turnover, and popularity. Supply of Bitcoin and Ethereum tokens do not entirely depend on the changes in price and demand for it, this year. So, oil or bitcoin trading? Find out here:
Having peaked at $68K last November, Bitcoin, with the rest of the crypto world, has been tumbling over for other reasons.
Few of the most prominent causes are the heavy pressure from macroeconomic forces like the swiping worldwide inflation, regulations, persistent hikes in the US Federal Reserve interest rates, the dire COVID lockdowns, and the last nail in the coffin – the Russia-Ukraine war.
Oil, however, heavily responds to global demands and prices. For example, if the demand for fuel and other oils globally press high, the suppliers will also double up with production to meet up – this effectively pushes the price up.
Then, when the prices get to its threshold, the prices will come crashing down, producers would also slow down their manufacturing as a response. This explains the cyclical nature of the global oil booms.
One thing that has immensely favoured oil trading is geopolitics. As Russia, a major oil exporter continues to invade Ukraine, they have shifted their focus from oil production to other immediate things, leaving other smaller oil producing countries to manage to cater for the demand.
With Bitcoin’s recent woes, it is difficult to say that Bitcoin would yet enjoy any sustainable growth this year. The negative feelings towards crypto is beginning to affect its reputation, and by extension, its ability to bounce back.
Oil is currently enjoying the hike in price of crude due to Russia’s inability to produce or sell during the invasion of Ukraine. This is set to increase as many more countries continue to boycott the invader.
So, oil trading or bitcoin trading? The advice would be to align your resources with the current global trend for maximum profile – oil trading seems to be more stable at the moment
Information contained on this article are just that – a piece of information. You should not use this to make financial decisions and we highly recommended you seek professional advice from an authorized expert.