With the soaring value of Bitcoin and rising concerns about the energy-intensive process required to obtain Bitcoin, American cryptocurrency entrepreneurs believe that they have found a solution to burning natural gas.
The creation or mining of Bitcoin (price in India) and other cryptocurrencies is highly profitable and requires a large number of computers dedicated to solving deliberately complex equations-this kind of effort consumes more electricity globally than the entire country, but these Start-ups say that this is the perfect source of power that is placed next to the oil well with the emitted combustible gas.
Sergii Gerasymovych, CEO of EZ Blockchain, said: “I think the market is huge. EZ Blockchain has six different data centers in Utah and New Mexico, and Canada, all of which have closed natural gas.
Across the country, companies like EZ Blockchain are building shipping containers in which racks with hundreds of computers mine cryptocurrencies, which are fueled by natural gas from oil wells that would otherwise be burned in the open.
In the past year, people have become more and more interested in their work. Since the COVID-19 pandemic has reversed the global economy, mainstream companies have begun to adopt the technology, and the prices of Bitcoin and other cryptocurrencies such as Ethereum (price in India) and Dogecoin (price in India) have appeared. Has skyrocketed.
However, because people are worried that digital assets rely on the carbon emission power source that causes climate change, there is a strong opposition to the energy use of digital assets.
This week, Tesla boss Elon Musk criticized Bitcoin’s energy consumption, especially the energy consumption of coal, and said that he will no longer accept cryptocurrencies as payment for his electric cars.
Tony Scott, head of analysis at BTU Analytics, an oil and gas research company, said that although entrepreneurs in emerging industries say that using natural gas that could otherwise be wasted can solve these problems, its ability to actually reduce emissions remains to be seen.
Scott said: “On the whole, it is small compared to other loads.” “They are creating economic value, but they don’t necessarily change emissions significantly.”
Burn off energy
There are a large number of processors around the world dedicated to the task of mining Bitcoin. According to the Cambridge Bitcoin Energy Consumption Index (CBECI), this event uses 149.6 TWh per year. This is slightly less than all the electricity consumed in Egypt.
As the most popular cryptocurrency, Bitcoin is undoubtedly valuable. The transaction price in mid-May was about 50,000 U.S. dollars (about 3.66 million rupees), while the price a year ago was less than 10,000 U.S. dollars (about 700,000 rupees). Rupee), which gives miners an incentive to find the cheapest source of currency. The power to increase profits.
Enter the burning natural gas.
Oil producers burn natural gas when they cannot find a way to process natural gas. Natural gas is cheap and pipeline construction is complicated. This is the case worldwide.
Quantum Economics Bitcoin analyst Jason Deane said: “Miners are usually concentrated in areas prone to generate excess electricity. This is the whole…new concept of burning natural gas.”
Flare burning will burn many greenhouse gases in natural gas, but the International Energy Agency said that in 2019, the global torch burned about 150 billion cubic meters of natural gas, and carbon dioxide emissions are about the same as in Italy.
Using flare gas to power ASICs used to mine Bitcoin does not completely eliminate emissions, but it is more effective than flare and can waste energy.
“We come in and their gasoline is zero, and we say, hey, we come in and release the gasoline from your hands and give you something,” said Matt Lohstroh, co-founder of Giga. Energy solutions.
“We will be able to reduce your exhaust gas, burn it, and create economic value for us.”
The advantage of natural gas lies in the cost of electricity. CBECI estimates that the average global electricity cost of Bitcoin mining is approximately US$0.05 (approximately 4 rupees) per KWh. Lohstroh said that natural gas power generation can reduce the cost of kilowatt-hours to less than US$0.018 (approximately 2 rupees).
People’s interest in switching torch gas to cryptocurrency mining has increased, not only because the value of digital assets is increasing.
Britt Swann, chief executive of Ecoark, the leading holding company’s expansion into cryptocurrency mining, said: “There is more scrutiny on the issuance of new torch licenses, and I think these producers are realizing this.”
“They are willing to play and find a way to use this gas without having to pay any price for it.”
Once Bitcoin and other digital assets are acquired, the company’s difference lies in how it handles Bitcoin and other digital assets.
Ecoark intends to convert it into U.S. dollars, but Lohstroh plans to hold the bitcoins he has mined, and he believes that one day it will support the new global financial system.
He said: “There is no need to sell the world’s most valuable asset with the lowest price.”