Bitcoin mining for gas well owners
According to recent reports, companies in Canada are utilising trapped natural gas for the mining of Bitcoins. This is producing a useful application of the illiquid energy sector in the cryptocurrency space.
Companies in Alberta Canada are currently developing a way of utilising natural gases in order to power the mining of bitcoin farms. According to Francis Pouliot, a representative from a BTC mining firm, this trend could become very useful for gas companies worldwide.
In a comment from the company,
“Bitcoin solves a massive problem for 1000s of gas well owners. There is overwhelming demand to monetize trapped illiquid energy.”
Gas well operators have been seeing prices decline over the years, and have become disincentivized to transport and collect natural gasses as these gasses need to be removed in order to maintain downhole pressures. This causes the gas to keep burning in open flames without any energy recovery.
The mining process of cryptocurrencies gives these companies another option. With the installation of Bitcoin ASICS miners, they will be able to use these natural gasses to power the process.
This concept is not generally new and can be applied across different industries. Recycling companies, for example, can also benefit from Bitcoin mining while carrying on with their operations.
Renewable energy is currently powering a huge part of the bitcoin mining process and the mining of bitcoin has started to incentivize companies to seek greener methods of electricity production.
This takes away the need for power coming from natural gas and fewer emissions into the atmosphere.
Cryptocurrency mining is becoming an opportunity for companies
China is still one of the most active countries currently mining Bitcoin and other cryptocurrencies thanks to cheaper energy cost. Other companies in America can also bring about greater decentralisation in mining.
Bitmain is one of the leading mining companies known today even though the company has seen a decrease in market dominance and plans to upgrade its operations soon.
The Bitcoin mining network has increased greatly over the years, going above 70 quintillion in hashing rate per second. And with the bitcoin halving coming in 2020 companies and individual miners are looking to get a greater share of hashing potential.
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