Find out why the emerging cryptocurrency mining and energy industries are so intricately linked and why they are important for future ESGs.
What is Bitcoin in the most basic terms?
Dusek: Cryptocurrencies like Bitcoin are alternative currencies that provide anonymity while reducing transaction costs. Decentralized and resistant to inflation. It has the potential to end poverty anywhere in the world. Politicians hate it, and the government is afraid of it.
LigonAs laid out in: Bitcoin white paper Bitcoin by anonymous creator Satoshi Nakamoto is a decentralized peer-to-peer version of electronic cash that allows online payments to be sent directly from one party to another without going through a financial institution. Although the cryptocurrencies of Ethereum and many other competitors have been created since the launch of Bitcoin in 2009, Bitcoin remains the most widely adopted and highly regarded for its pseudonym transaction capabilities and network security. I am. The new Bitcoin is “mined” on special computers that compete with each other to infer complex numbers. The winner is given a “block” of Bitcoin, and the process (called the Proof of Work Consensus Mechanism) creates the Bitcoin blockchain and validates the transactions of other users.
Do you think the relationship between oil and gas producers and cryptocurrency miners stays here? Is it sustainable in the long run?
Dusek: So far, it’s a great relationship, but we’re still in the honeymoon stage. You can see that new variants evolve as the margins shrink (for a variety of reasons). Just as hydraulic fracturing has changed the way we produce energy. Bitcoin miners will be the key to next-generation energy development.
Ligon: I think Bitcoin miners have the longest connection with off-the-grid energy sources and small oil and gas producers, but major producers like ExxonMobil are already in operation. Watching Pilot project Test the use of flare gas to mine Bitcoin.
Cryptominers, which source natural gas from oil and gas producers and flare to power energy-intensive supercomputers and servers, are governments and agencies that reduce greenhouse gas (GHG) emissions. Seems to be a logical partnership with an oil company facing increasing pressure from. How are ESGs intertwined in this partnership and what role will ESGs play for the two parties in the future?
Dusek: So far, there is no 100% renewable energy consumer. You may be paying for it, but it’s as clean as your neighbor. Reducing GHG emissions is like a shell game until the world uses 100% renewable energy. Creating or getting renewable credits is the easiest way to meet the criteria. That said, crypto miners can be the only exception to the rule.
Ligon: Cheap energy is the main driving force for Bitcoin miners seeking to partner with oil and gas producers, but the impact of ESG is to see these same producers open their arms and embrace them. That’s why. Proof of concept outlining potential carbon-neutral cryptocurrency mining, Bitcoin mining to reduce GHG emissions compared to flaring and venting, and other “more environmentally friendly” options compared to current practices there are a lot of.