Canadian natural gas company turns waste gas into treasure, and Bitcoin Mining once again acts as the ultimate buyer of energy

According to a report by Bitcoinist on July 13, Canadian gas companies are now using a large amount of retained natural gas to mine bitcoin, creating a useful use for these illiquid energy sources. These gases, if not used effectively, will burn into the atmosphere.

Gold-3080552_960_720

Image source: pixabay

Why natural gas can be used for bitcoin mining

Gas companies in Alberta, Canada, are developing ways to use natural gas to power bitcoin mines. The news was revealed by Francis Pouliot of Bull Bitcoin, a Canadian bitcoin mining company.

Prio said on Twitter on July 10, 2019 that this trend may be very beneficial to natural gas companies. An excerpt from this tweet is as follows:

“Bitcoin has solved a huge problem for more than 1,000 gas well owners. The need to turn the remaining illiquid energy into money is unstoppable.”

In recent years, as natural gas prices have fallen, gas well operators have lost the incentive to collect and transport natural gas. In order to maintain downhole pressure, some gas needs to be extracted.

The end result is that natural gas is continuously burned into the air without any energy recovery.

Bitcoin mining encourages efficient use of energy

However, due to the strict restrictions imposed by environmental regulators, gas well operators cannot burn natural gas indefinitely. Once the threshold is reached, the gas well must be shut down.

Now, the gas company has another way to go – install the Bitcoin ASIC mine and use natural gas to power the process.

This finding also once again validates the notion that Bitcoin digging mining as a “final buyer of energy” as Coinshares pointed out in its latest report.

Bitcoinist has reported that Coinshares claims that renewable energy accounts for more than 74% of global bitcoin mining activity.

In addition, this finding is completely different from the description of the “pollution environment” that critics often propose. Bitcoin mining is spurring companies to seek a more environmentally friendly approach to oil and gas.

More natural gas supplies electricity to bitcoin mines, meaning that oil and gas extraction emits less carbon dioxide into the atmosphere.

Promote further decentralization of mining

North American oil and gas exploration companies entering the bitcoin mining business will further promote decentralization in this area. On a global scale, China is still at the center of Bitcoin's unstoppable mining.

In the second half of 2018, the fate of Bitcoin was reversed and its dominant position declined significantly. However, the company recently announced plans to expand its business in China.

With the halving of Bitcoin block rewards in 2020, miners are trying to take a bigger share of Bitcoin's total power. As a result, the computing power has grown at an alarming rate, reaching more than 70EH/s.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Bitcoin

OKX will launch a signal strategy and has now opened a signal provider recruitment.

The signal strategy function is expected to be officially launched in August to September 2023. This function will al...

Blockchain

Guide to secure deposits: How to better hide the Bitcoin in your hands?

In an era of constant economic uncertainty, surveillance, professional cybercrime, and hacking, knowing how to more s...

Blockchain

"Gemini" Risk Control Interview: How the Traditional Financial Regulatory Framework Maps to the Crypto Industry

Source: Yahoo Fiance Original author: Daniel Kuhn Translator: Moni Source: Odaily Planet Daily The United States appr...

Blockchain

Number said | In the first half of 2019, blockchain private placement financing of 11.851 billion yuan exceeded 60% of funds invested in the US market

As the cryptocurrency undergoes the “Bear Bull” conversion, the blockchain private equity financing mar...

Blockchain

Exchanges are temporarily withdrawing cash, data is garbled, or the Amazon server failure in Tokyo

According to Yahoo Japan, the Amazon Web service failed at around 13:00 on August 23, 2019. The service that failed w...

Blockchain

Look at IEO, the dilemma of markets, exchanges, project parties and investors

"IEO's projects are flying, do you want to follow?" Wei Dong entered the currency circle for more than...