Bitcoin Mining Happens With Electricity Not In Use, Says Senior Market Analyst At eToro
Bitcoin mining happens with super cheap electricity, in many cases utilizing energy that would have otherwise gone waste. That’s the claim made by a senior analyst at eToro.
As things stand, Bitcoin mining has taken a unique twist that developed from the traditional non-digital activity (oil mining).
However, mining for oil and bitcoin mining are a little bit similar, and Mati Greenspan, a senior market analyst at eToro, says that
“Much of the time, bitcoin mining happens with super cheap electricity, in many cases utilizing energy that would have otherwise gone waste. Here’s an example.”
In Greenspan’s tweet, an article was shared on how Canadian oil companies are (somehow) mining bitcoins. It is important to know that these oil operators in Canada are using the energy of wasted gas that comes from mining petroleum to mine bitcoins.
Much of the time Bitcoin mining happens with super cheap electricity, in many cases utilizing energy that would have otherwise gone to waste.
Here’s an excellent example…https://t.co/zJjhmwSqnN
— Mati Greenspan (@MatiGreenspan) March 30, 2019
According to the article shared by Greenspan, large shipping containers on oil fields are packed together with oil equipment, thus, using both in which natural gas that comes from mining petroleum is often directed into the equipment to mine bitcoins.
The system which is now regarded as the next big trend is to utilize the natural gas instead of flaring it as many oil fields do. The company is rather doing this to utilize this by-product (natural gas) which is often wasted into the air.
It is also necessary to know that natural gas – which is a by-product of mining petroleum – has little use and hence, has a drop in price on global markets; most oil companies rather flare it than sell.
Stephen Barbour, a consultant that works with various oil companies to lower their operational costs, is regarded as the brain or innovator behind this all, according to the Wall Street Journal. Barbour claims that he had the idea after reading the potential profits of mining bitcoins.
“I knew about all the wasted energy that goes on… Reading about bitcoin mining and how it could monetize energy through the internet, I just thought that was unbelievable.”
Subsequently, the product foreman of the oil company in Canada (Black Pearl Resources) Ryan Wartman stated to Wall Street Journal that by using natural gas to mine bitcoins they have gotten other benefits such as reducing the flaring of natural gas in accordance to government regulation, which permits the mining of more petroleum.
He said: “It was the best option for us… We’re using it to bring ourselves below the government-regulated amount that we can vent on location and keep producing oWartman further emphasized, that the company keeps the oil-well operating 24 hrs per day by directing the natural gas into the crypto-mining rigs.
These days, mining is taking a new turn and the traditional methods are dropping which is due to the fact that miners are looking for more renewable methods. The founder of BTCX, Christian Ander stated that his mining costs decreased by 75% due to the use of solar sources – more miners are using this method nowadays.
Greenspan not only talked on the potentials of the cheaper means of Bitcoin mining but was bullish on Bitcoin stating that 2019 will be a great year for Bitcoin.