Opinion: oil and gas companies will dominate the field of cryptocurrency mining

Bitcoin mining is often criticized for its excessive energy consumption. In the same timeMining can reduce waste emissions from the oil and gas industry.

Podcaster Marty Bent posted on his blog on April 15(Marty Bent) reported that he has been mining Bitcoin for a year using excess gas – a by-product of oil production – to power their ASICs. Together with Great American Mining (GAM), he created a small mining farm in a shipping container right in an oil field.

According to Bent, he was convinced that oil and gas producers could become the largest miners in the cryptocurrency market. During a podcast, he said:

We are trying to achieve that oil and gascompanies realized the profitability of mining investments and the benefits of using mining farms. The creation of such infrastructures in the fields will allow them to use production waste much more efficiently.

Cryptocurrency miners, especially against the backgroundWith the 2020 halving looming, they are looking for ways to reduce energy costs, and oil and gas companies are looking for ways to improve efficiency and profitability. GAM uses gas that is typically disposed of as a by-product (or sold, often at a loss). 

If the system is developed correctly, containers with bitcoin miners will be able to work much longer and bring on average 5 times more profit than selling gas through pipes.

This concept has been gaining popularity recentlytime. The Winklevoss brothers recently invested in Crusoe Energy Systems, a Texas company that uses waste from natural gas production to mine cryptocurrencies. 

Based on materialscointelegraph.com