bitcoin in profit creation or mining (price in india) and for other cryptocurrencies, many computer machines deliberately solve complex equations that consume more energy than the entire nation globally. But now these startups say that placing flammable gas in front of oil wells is the best energy source for this.
Sergii Gerasymovych, CEO of EZ Blockchain, said that this market is very large. EZ Blockchain has 6 different data centers that operate on natural gas in the US states of Utah, New Mexico and Canada. Across the country, companies like EZ Blockchain are setting up shipping containers where hundreds of cryptocurrency mine computers are mounted in racks built. They are being fueled by the natural gas coming out of the oil wells, which if not done, the gas goes to waste in the open.
Bitcoin and Ethereum (price in india) and Dogecoin (price in indiaCryptocurrencies like ) have seen a celestial rally in prices after the world economy collapsed during the Covid pandemic. Now mainstream companies are also adopting this technology. But a reverse wave about the energy consumption of this digital asset began when it was found to be linked to a carbon-emitting energy source that alters the environment.
Tesla boss Elon Musk this week criticized bitcoin’s energy consumption, especially that of coal. He said he would not accept bitcoin as payment for the sale of his electric cars. At the same time, entrepreneurs engaged in this new inexperienced business are saying that this concern can be eliminated by using natural gas. Tony Scott, analysis managing director of oil and gas research firm BTU Analytics, said the decline in emissions residue from natural gas is clearly visible. “It’s very small relative to the larger scheme of things and other loads,” Scott said. “They are creating economic value, but they are not necessarily changing the emissions profile.”
There are countless processors around the world engaged in the mining of bitcoins. According to the Cambridge Bitcoin Energy Consumption Index (CBECI), the process consumes 149.6TWh of energy per year. This energy is only slightly less than Egypt’s total electricity consumption.
Bitcoin is undoubtedly valuable as the most popular cryptocurrency which was trading for less than $10,000 (approx Rs 7 lakh) a year ago but is now trading at $50,000 (about Rs 36.6 lakh). Obviously this is tempting miners to find the cheapest energy source to increase margins.
Entering Flared Natural Gas
Oil manufacturers can burn natural gas if they find a way to process it. Making its pipeline at a low cost would be quite complicated. Jason Deane, bitcoin analyst at Quantum Economics, said, “Miners want to be located where there is a lot of energy. This is the new concept of gas flaring now.”
Many greenhouse gases are also burnt to ignite natural gas. But the International Energy Agency says that in 2019, the same amount of carbon dioxide gas was released in burning about 150 billion cubic meters of natural gas as it emits from Italy alone. Powering application-specific integrated circuits with flared natural gas to mine bitcoin may not completely prevent emissions. But it would be more efficient than burning it and use up the energy that would have been wasted later.
Matt Lohstroh, co-founder of Giga Energy Solutions, said, “We’re coming, they’re building a void with their gas, we say we’re coming and we’ll take the gas out of your hands and give you something in return. ” We will be able to reduce your emissions, burn it and make it an economic value on our behalf.”
The advantage of natural gas lies in its cost of energy. CBECI estimates that the average global energy cost for bitcoin mining is around $0.05 (about Rs 4) per KWh. Lohstroh said the use of natural gas would bring this cost down to $0.018 (about Rs 2). Now there is a growing interest in giving flamed gas to cryptocurrencies, and this is not happening only because the value of these digital assets is now increasing.
Britt Swann, who leads Ecoark Holding Company in cryptocurrency mining, said, “Flare gas permits need to be reviewed before they are issued and I think these products are making that happen.” They want to play it and this gas. want to find a way to use it without paying any price for it.”
While the company is also thinking about what to do after acquiring bitcoin and other digital assets, Ecoark is considering converting it to dollars. But Lohstroh is considering holding bitcoin. He believes that one day it will underline the new global financial system. “There is no need to sell this most valuable asset, it is very low in price right now,” he said.