Bitcoin is one of the most cryptocurrencies all over the world, but in the past few weeks, it has gained attention from even those who are not even interested in bitcoins. A lot of things have happened in the crypto world in the past month, and if you stay updated, you must be well-aware of it. If you are not, you can read this article and enhance your knowledge. You can visit the bitcoin-investor.app and stay updated with all the latest bitcoin news.
Bitcoin mining is the process of adding blocks to the blockchain and issuing new bitcoins in the market. Bitcoin mining is a complex process and requires certain equipment and hardware for bitcoin mining, and they are termed as ‘mining rigs’. Mining rigs include generators, computers, and trailers, which carry pipes. Bitcoin mining is powered by electricity, and the owners use natural gas for that purpose. The stray natural gas, which the oil companies no more want, is used by the for-mining cryptocurrencies such as bitcoins.
Cryptocurrencies are decentralized currencies that can be used for making transactions without the involvement of any financial middleman or third party. Bitcoin mining consumes a lot of electricity as there are several supercomputers that work for mining, and a tremendous amount of electricity is consumed by them during the process. These supercomputers also emit a lot of heat while working and have a temperature as hot as 71 degrees Celsius. You will be surprised to know that in cold areas such as North Dakota, people can stay warm and cozy by simply sitting near these mining computers.
Miners obtaining energy from oil fields
Bitcoin mining is an expensive process, and the primary reason behind that is electricity consumption. So, to cut down the costs, miners are nowadays sending mining rigs to oil fields as it allows them to obtain the required energy at the most affordable cost. During the process of extracting crude oil, natural gas and oil also come out, which is of no use to the drillers as they have no way to make the gas reach the market. So, they simply destroy it by burning, which is termed flaring. The process created a lot of carbon dioxide emission which straightly goes into the air in the form of Methane.
Oil companies have already received a lot of criticism for the emission created and which has a massive impact on global warming. So, the best way for them to get away from the criticism is to give the produced gas to bitcoin miners free of cost, or they can also sell it to them. Most of the oil companies avoid flaring their gas as it is setting their money on fire because if they can sell it for money, then why should they give it away and that too for free.
Bitcoin is an uncertain solution to natural gas emission
It is irrefutable that selling natural gas to miners for bitcoin mining is an excellent solution to the unwanted gas emissions, but it is not a permanent solution to it. The future of cryptocurrency is highly uncertain as you never know how it will turn out to be in the future. Moreover, the cryptocurrencies like bitcoin create their own emissions. If we talk about the total Carbon dioxide emission of the bitcoin industry, it is over 60 million tons which is equal to the emission caused by the exhaust of 9 million cars altogether. The environmental impact of bitcoin mining is the primary reason behind the bitcoin market crash in May.
Elon Musk, Tesla owner, tweeted that he is investing over $1 billion in bitcoins which increases its market value, and everyone was running to make a bitcoin investment. But soon after that, he made another announcement in which he stated that after knowing the environmental damage caused by bitcoin mining, he would no longer support bitcoin, and his company is also stopping accepting bitcoin payments. He also offered his support to a new cryptocurrency in the market known as dogecoin. It attracted investors towards dogecoin and led to a sudden increase in its price. Dogecoin witnessed a growth of 10000% after the tweet was made by Elon Musk.