Numerous computer machines for thoughtful manufacturing or mining of Bitcoin (price in India) and other cryptocurrencies are thoughtfully solving complex equations so that it consumes far more energy than the nation as a whole. But now these startups say that putting flammable gas in front of oil wells is the best energy source for it.
Sergii Gerasymovych, CEO of EZ Blockchain said that this market is very large. EZ Blockchain has 6 different data centers operated by natural gas in the US States of Utah, New Mexico and Canada. Companies like EZ Blockchain across the country are setting up shipping containers where hundreds of cryptocurrency mine computers have been placed in racks built. They are being fueled by natural gas coming out of the oil wells, which if not done, the gas is wasted in the open.
Cryptocurrencies such as Bitcoin and Ethereum (price in India) and DogCoin (price in India) have seen skyrocketing prices after the world economy collapsed during the Kovid epidemic. Now mainstream companies are also adopting this technology. But a reversal about the energy consumption of this digital asset began to arise when it was found to be related to the carbon emission energy source that changes the environment.
This week Tesla owner Elon Musk criticized the energy consumption of bitcoin, especially the energy generated from coal. He said that he would not accept bitcoin as a payment in the sale of his electric cars. At the same time, entrepreneurs who are engaged in this new inexperienced business are saying that this concern can be eradicated by the use of natural gas. Tony Scott, the analysis managing director of oil and gas research firm BTU Analytics, said the decline in emissions residues by natural gas can be clearly seen. “It’s very small relative to the big scheme of things and other loads,” Scott said. “They are creating economic value but not necessarily changing the emission profile.”
There are countless processors around the world in bitcoin mining. According to the Cambridge Bitcoin Energy Consumption InDex (CBECI), the process consumes energy at 149.6TWh per year. This energy is only slightly less than Egypt’s total electricity consumption.
Bitcoin is undoubtedly valuable as the most popular cryptocurrency that traded for less than $ 10,000 (about Rs 7 lakh) a year ago but is now trading at $ 50,000 (about Rs 36.6 lakh). Apparently it is tempting miners to find the cheapest energy source to increase margins.
Penetrated natural gas
Oil manufacturers can burn natural gas if they find a way to process it. It will be quite complicated to build a pipeline at a low cost. Bitcoin analyst Jason Deane of Quantum Economics said, “Minors want to be located where there is a high amount of energy. This is now the new concept of gas flaring.”
Many greenhouse gases are also combusted to ignite natural gas. But the International Energy Agency says that in 2019, about 150 billion cubic meters of natural gas was released in the same amount of carbon dioxide gas that comes out of Italy alone. To mine bitcoins, powering the application specific integrated circuit with flared natural gas may not completely stop emissions. But it would be more efficient than burning it and that energy would be used which was to be wasted later.
Matt Lohstroh, co-founder of Giga Energy Solutions said, “We are coming, they are making zero with their gas, we say we are coming and we will take gas from your hands and give you something in return. ” We will be able to reduce your emissions, burn it and make its economic value from our side. “
The end of natural gas is in its energy costs. CBECI estimates that the average global energy cost for bitcoin mining is about $ 0.05 (about Rs 4) per KWh. Lohstroh said that the use of natural gas would bring this cost down to $ 0.018 (about 2 rupees). Now interest in giving flared gas to cryptocurrencies is increasing, and this is not happening only because the value of these digital assets is now increasing.
Britt Swann, who leads the Ecoark holding company in cryptocurrency mining, said, “The flare gas permit needs to be reviewed before it is issued and I think these products are realizing that.” They want to play it and this gas Want to find a way to use it without any cost to it. “
While the company is also thinking about what to do after acquiring Bitcoin and other digital assets, Ecoark is considering converting it into 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, right now it is very low in price,” he said.