USA lose oil but will replace with btc and crypto

[WillyAp]

And USA is the biggest importer of oil as well.

That is not true:
 

• European Union    14,060,000
• China    10,852,615    
• United States    5,877,000    
• India    4,033,050    
• South Korea    2,660,369    
• Japan    2,472,364    
• Germany    1,671,178    
• Spain    1,104,594    
• Italy    1,014,241    
• Netherlands    997,769    

Data from 2017 to 2022
https://en.wikipedia.org/wiki/List_of_countries_by_oil_imports

[btc78]

What is the connection between oil and crypto?

Oil is used for multiple purposes in different industries. While crypto is a valuable asset I don't think there are dire consequences if the US were to stop using bitcoin compared to if they stopped outsourcing oil from other countries,

Even if US themselves is a producer of oil, they are also one of the biggest consumers of oil in the world so just relying on their own oil might not be ideal for them.

The United States is both the largest producer of oil, mining approximately 11.5 million barrels per day, and also its largest consumer of oil at more than 17 million gallons per day

_{(https://worldpopulationreview.com/country-rankings/oil-consumption-by-country)}

I don't understand how crypto plays in this.

[pooya87]

And USA is the [third] biggest importer of oil as well.

That is not true:

Congratulations you found a t that wasn't crossed and an i that wasn't dotted while missing the whole discussion

[kotajikikox]

I am not sure if it will be good for the USD because oil is an energy source while btc is a payment system. Btc is definitely a revolution but let’s don’t make it bigger than it is. To me, oil is a far superior asset compared to btc. The whole world needs oil for transportation but we can’t say the whole world needs bitcoin.

While bitcoin is definitely an asset that all governments should be looking into, if a government doesn't dip their toes into crypto they wouldn't feel such a difference in their economic state. Of course I think crypto can improve their economic situation but if a country doesn't get any more oil from their sources, the following events will happen:
> usa would highly depend on their own produced oil
> they might experience a reduced energy supply
> oil/energy will be more expensive due to lack of resource
> other expenses like food, transportation, and other manufactured products/services.

The Arabs see the dollar is getting weakened and they want to move away from it, that’s a natural reaction. The other countries should follow the same course.

I have an idea that other countries are alreadyon that way. BRICS is very keen on their dedollarization movement while third world countries who depend on the us can't do much because they are less powerful and capable than the us.

[NotATether]

And USA got their own crude oil too.

I have never heard about this, can you give me a citation?

I know that the USA has a huge amount of natural gas, which is where the vast majority of its fuel comes from - and actually it might have the biggest natural gas reserve or production, but I'm not exactly sure which one.

They still import oil from the middle east for some reason.

But yeah, this will hurt things like Treasury bonds for sure.

[Synchronice]

Arabs emirates moving away from usd.
Well USA don't care Because they have btc and crypto.
And USA got their own crude oil too.
So USA now will make the petro dollar to crypto dollar we see that USA will be main seller of crypto you need crypto you buy it from USA it Will be bigger than oil

Do you really think that the USA doesn't care about oil? You underestimate the power of oil and overestimate the power of Bitcoin and crypto.

- 28% of all Bitcoin nodes according to https://bitnodes.io/nodes/all/ (#1 before Germany, but the EU as a whole has more nodes)

I bet Germany is popular because of Contabo, they have datacenters in Frankfurt am Main and Nürnberg, it's super easy to set up Bitcoin node on Contabo too but what I don't understand is that isn't it pointless to run hundreds of nodes under one company? It's pointless if they are centralized, then one running node is already enough.

And USA got their own crude oil too.

And USA is the biggest importer of oil as well.

Yes, but the USA imports lots of low quality crude, then refines it and exports it. I think that the discussion about the USA & oils really deserves a dedicated topic. That's a very interesting thing.

[pooya87]

And USA got their own crude oil too.

I have never heard about this, can you give me a citation?

https://www.eia.gov/dnav/pet/pet_sum_snd_d_nus_mbblpd_a_cur.htm

Yes, but the USA imports lots of low quality crude, then refines it and exports it. I think that the discussion about the USA & oils really deserves a dedicated topic. That's a very interesting thing.

I agree that it needs its own dedicated topic and I'm no expert on this subject but I can say the oil they import from West Asia is "light" not low quality. Light oil is super easy to both extract and refine to get products such as petrol.
On the other hand the oil found in America (North and South) continent is heavy oil which is extremely difficult to extract in most cases and refining it is hard and costly as well. In fact this is why they import so much hydrocarbons and petroleum products. AFAIK one of the destinations for our natural gas condensate exports is America to refine that heavy oil.

[el kaka22]

To be fair EU is not a nation, it's combination of nations, so China is number one, and USA is number two. Wouldn't you want your nation to be in that kind of list? Something where China is number one and USA is number two? I would love to see my nation there.

Simply because it also means that we are capable of paying for it, while these nations are importing Oil, they are also capable of paying for it as well, and everyone is willing to send them their oil in order to get paid. If the nation I am living was rich enough to be in top two, that would have been a great thing for me as well. In the end, of course we should stop using oil if we can, but that doesn't mean that we should be sad to be rich enough to buy that much.

[d5000]

I bet Germany is popular because of Contabo, they have datacenters in Frankfurt am Main and Nürnberg,

In general Germany has a strong Internet/datacenter industry, and there is also the VPN topic, there may be many nodes connecting via VPN to Frankfurt, due DE-CIX.

But that is true for the US as well, the US also serve customers all over the world with their datacenters. Most South American internet companies for example host their infrastructure in the US, and it would not be surprising if South American full Bitcoin node operators would also set up them mostly in the US.

Anyway the topic of this thread, I think at least , is the cryptodollar. We could describe it as the importance for countries to count with a good number of Bitcoin owners and producers - in this case the US, where it could strengthen their own currency because people have to buy US dollars to buy Bitcoins from Americans. The mechanism is a bit different from the petro-dollar, but its effect should be similar if the assumption of the OP was true.

It is quite difficult to find data about the Bitcoin ownership distribution per country. Of course there are websites like Bitcoin Treasuries, dominated by American companies, but the amounts owned by the companies and states listed there are relatively small, about 12% of the total if we include financial companies and entities like MtGox. So from more than 80% of all Bitcoins the location is unknown.

I think the US ETFs for sure strengthened the US position in Bitcoin holdings. But their customers may not be all Americans, not even the majority. Anyway, it matters for the "cryptodollar" assumption because non-American US ETF customers have to pay USD at least to an intermediary to buy the Bitcoin ETFs. Thus their contribution to the "cryptodollar strenght" is positive as long as their inflow is positive, but if they begin to sell, they will be net negative for the "cryptodollar".

It's pointless if they are centralized, then one running node is already enough.

(slightly OT) It depends what you want to do with the node. Say you're a merchant and simply want to have a node you trust yourself and can control via your own SSH access without the (low) risk of attacks on SPV. Or you want to query it without submitting your address/public key list to an Electrum node for example. There are lots of good use cases. Of course if you want to contribute to decentralization then the strategy isn't ideal.