Is natural gas the answer to cheaper and sustainable energy for bitcoin mining?
Bitcoin miners utilize a vast amount of energy. Thanks to natural gas – an oil drilling industry’s waste and by-product – bitcoin mining has found a new way to operate without consuming a large volume of electricity.
In North America, the prices of natural gas have collapsed. Instead of transporting it to other regions to sell, the oil-drilling industry will just burn or release it into the air.
Fortunately, there are some gas suppliers in the United States that have limits on burning or venting of natural gas. This led to the selling of the natural by-product for less in some parts of Texas where haulage firms are paid to take care of it instead of nothing. Another alternative is for the oil mining industry to shut down the rigs.
eToro market analyst Mati Greenspan commented:
“Much of the time Bitcoin mining happens with super cheap electricity, in many cases utilizing energy that would have otherwise gone to waste.”
Discovering a better solution
To prevent natural gas from getting wasted or sold at unreasonable prices, a better solution is needed. This oil industry waste product has been utilized to power mining rigs with electricity that lie in the secluded Canadian oil fields. Who could have thought that this waste product could generate electricity for bitcoin mining? No one, but oil and bitcoin entrepreneur Stephen Barbour does!
The oil fields are composed of oil-related industrial machinery. These are shipping containers used to siphon the natural gas produced during petroleum mining. It is then sent to an electrical generator which is used to power bitcoin mining operations.
Each container consists of a generator secured to convert oil industry waste product into electricity to run the mining rigs. Every day, the system utilizes about 400 cubic meters of natural gas that enables the oil wells to function for 24 hours a day.
Unlike other oil fields or oil mining companies, Black Pearl Resources discovered a way to counterbalance their operational costs using natural gas. The natural gas might be wasted by other oil drilling companies but not this Canadian oil mining field.
Barbour is not only saving wasted energy but is also profiting from it. He emphasized that bitcoin is an unbinding technology for mankind. It converts useless energy into electricity to power computers and computes small figures giving financial liberty for people around the world.
He is also a consultant who collaborates with oil mining companies to reduce their operating costs. Barbour noted that he read and studied regarding the possible profitability of bitcoin mining which led to the notion of using natural gas.
Not applicable to all
Although this kind of solution is widespread, it does not mean it can be employed by all companies in the oil drilling industry. The capital spending of purchasing and transforming a shipping container could reach to $130,000. This is even before the factoring in the price or the selling of account receivables in the cost of mining rigs.
The symbiotic relationship between natural gas and mining bitcoin is no doubt beneficial to the oil drilling and cryptocurrency industry. As for the mining cost, bitcoin miners will be pleased with the reduced cost.
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