Many people consider the cryptocurrency industry to be too volatile. Recent oil price developments go to show that Bitcoin and altcoins aren’t the only assets capable of swinging wildly.
Bitcoin and altcoins tend to gain and lose bigger percentages of their value compared to other markets.
There is no Free oil, Unfortunately
Those multi-percentile swings have often made media headlines.
It is evident that the oil market is going through similar motions right now.
This week, it lost nearly 300% in value out of the blue.
This is primarily due to the coronavirus crisis, as demand for petroleum has fallen significantly.
With this particular futures market still in the bearish range, that may not necessarily change either.
It is important to note that this doesn’t mean users are paid to buy oil these days either.
Futures contract owners will have to take delivery of physical oil in May, when their contracts expire.
Storing that oil will be challenging, as all storage solutions are filled to the brim already.
Nor does this mean that oil prices at gas stations will decrease significantly either.
Actual crude oil trading still happens at $25 and higher, thus consumers will not see any real impact for quite some time to come.