Bitcoin is 11 years old. However, Bitcoin mining or cryptocurrency mining is still a thorough task that involves a lot of energy consumption and cost. After taking so much pain, the results are intermittent and baffling. Though the mining process sometimes inspires the Bitcoin or crypto miners due to the prospect of being rewarded in BTC or other crypto tokens, which helps in reviving the enthusiasm sporadically.
Few companies have come up with a viable solution to override the mining issues and solving the problems for miners via natural gas.
Last year, Winklevoss capital, along with other prominent investors, had invested $4.5 million in a seed fund for Texas-based Crusoe Energy Systems Inc.- the company uses natural gas (through waste conversion method) to fuel cryptocurrency mining data centers.
Reportedly, the Black Pearl Resources- Canadian oil mining company, also involved in the activities of mining Bitcoin to balance the operational costs.
Since 2017, another Canadian mining firm Upstream Data is servicing to Oil & Gas companies by selling and renting out mobile mining equipment to them.
In Highlights: GAM
In a recent blog post by Marty Bent, it has discovered that the process of Bitcoin mining can sort it out by embracing the new solution which Oil & Gas (O&G) sector is offering.
Podcaster Bent mentioned, “If executed correctly, this will be a huge benefit for everyone involved.” There is an ample opportunity and massive incentive in the mining process if combined with oil & gas fields.
This opportunity would not only help the oil & gas industry to emit less waste but to “bolster their revenue streams” at the same point, Bent noted.
Bent further reveals his involvement with the Great American Mining (GAM) company to mine Bitcoin. What made him astonishing is the idea of mining Bitcoin using the excess gas formed as a byproduct of mining oil to power the rigs.
Meaning, the waste gas realised by the O&G companies is usually converted into natural gas (liquid Petroleum Gas) and further transported in the market to generate more revenues. Though, the process of making additional revenue by this method is annoying, pricy, and slow to fetch the results. It sometimes takes the decade, as the uptime of the machines that convert the gas into liquid is intermittent and unreliable. Here, Bitcoin can fix these issues by offering a “digital pipeline.”
Bitcoin Mining Experiment via O&G by GAM
As per the information, the O&G companies can become some of the biggest miners within the Bitcoin network once they become mindful of the process to mine Bitcoin.
Last year Dec, the Great American Mining (GAM) implemented a small Bitcoin mining trial operation in a shipping container instead of a steel structure (generally required for Bitcoin mining) in an oil field owned by the publicly traded oil firm.
The trial has shown tremendous results in the uptime. The experiment in the form of a container which is up and running has resulted as much as +95% uptime.
“Once mined, we can liquidate bitcoin as the prices have been trending up since the protocol launched in 2009.”
“If designed correctly, containers filled with bitcoin miners have far superior uptime and are 5x more profitable (on average) than sending the gas to a pipeline to sell.”
“And lastly, deploying a bitcoin mining operation is a much larger net benefit when compared to other flare mitigation options like NGLs and selling the gas via a pipeline, which are becoming unprofitable.”
The experiment suggests the massive possibilities for O&G companies to become one of the best Bitcoin miners within the Bitcoin network and get powerful incentives.
In the recent podcast on April 15, Bent has pushed this concept forward and said that GAM is trying to have a grasp of Bitcoin mining through Oil & Gas industry and make the producers realize the importance of this great opportunity.
The producers must invest in the Bitcoin mining infrastructure in their fields to increase their efficiency with the waste gas. The initiative would further help the Bitcoin ecosystem to generate more BTC while protecting the dominant cryptocurrency and also distribute it from the mining perspective.
“Bitcoin needs to be further distributed geographically from a mining perspective, and O&G companies need to be less wasteful and more profitable. Both industries are pure, ruthless capitalism. They pair really well together.”
The Idea: How Oil Companies Can Dominate the Mining Process?
Bent has simplified the GAM’s notion in his podcast.
As Oil & Gas companies are eyeing on to be more efficient and powerful, Bitcoin miners are gawking on cheap and generous energy sources at scale. Here, GAM took the opportunity and trying to provide a solution to both of them. GAM is deploying the waste gas as a crypto mining energy source. The waste gas is a byproduct of Oil & Gas industry- which sometimes the producers sell-off at low prices.
Bitcoin mining does not require warehouses and steel structures to mine BTC since there is an option of using the cheap stacked shipping containers is available.
“You’re seeing a trend now, where even centralized locations are adopting. Instead of building like a large warehouse and doing all the infrastructure, they’re using the container model as the way to build on-site…. a year or so ago, that wasn’t the case at all. And now you’re seeing very, very large places, you know, stack 40, 50, 60 containers… it’s just cheaper to do it that way.”