Official figures in Moscow are currently discussing a proposal launched by Russian oil companies to extract cryptocurrencies in their exploitation spaces. The proposal is based on using associated petroleum gas to produce electricity, achieving lower consumption of traditional electricity and thus promoting the more outstanding production of cryptocurrencies based on this gas. To know more, visit crypto engine.
Although Russia has already advanced in terms of the legal environment surrounding cryptocurrencies in the country, they continue to discuss the creation of more legal instruments that can give the legal basis that such an invention deserves without affecting any of its participants.
The legalization of crypto mining as industrial activity has gained support in Russian government circles, which indicates that said legislation is discussed with a high probability of being approved. Consequently, the environment and all the parties involved in the climate would benefit mainly the mining process.
Although President Vladimir Putin does not entirely agree with cryptocurrencies as a means of exchange or payment for goods and services that replace traditional fiat currencies.
His position leans more towards the private use of cryptocurrencies.
Companies could take advantage of the gas
If carried out, the oil companies could take advantage of the more than 680,000 million cubic meters of associated gas produced in Russia each year due to oil extraction.
The oil company opens its doors to Bitcoin miners in Siberia, Russia. Companies such as Gazprom, Russia’s leading oil and gas producer, plan to open their facilities in Siberia to Bitcoin mining companies that wish to take advantage of the resources provided.
As reported by Gazprom Neft, a subsidiary of Gazprom dedicated to oil exploitation, during 2020, a local company installed a container equipped with 150 Bitmain Antminer S7 miners for a month and managed to mine 1.8 BTC with resources derived from oil extraction.
The associated gas will control Bitcoin mining farms
Being one of the top 10 oil producers in the world, the company stated that for the first time, they had captured the ecological use of 95% of the gas associated with oil exploitation, dedicating it to Bitcoin mining. The company plans to continue with this initiative.
To keep the equipment running, they achieved the goal of having the mining farm receive electricity generated from waste gases from oil production.
The Gazprom company states that they support Bitcoin mining, but we are not miners; in the same way, it plans to continue providing resources to Bitcoin mining to increase the use of gas associated with oil extraction.
Russia aims to replace dollar reserves with long-term digital assets; gas consumption for Bitcoin insertion could possibly improve the efficiency of natural gas use in the current cohort through mixed digital currency mining components.
Russian authorities are discussing the possibility of starting Bitcoin (BTC) mining after recently suggesting that they could use cryptocurrencies to lessen the country’s dependence on the US dollar.
The associated gas will control nearby Bitcoin mining farms if the proposal is positive.
This type of gas is a by-product of oil drilling often wasted through flaring, pending the cost of building gas transportation infrastructure.
The project would reportedly involve Russia’s largest oil companies, which are currently refraining from expanding such operations due to a lack of regulatory certainty.
The news comes after the statements made by the President of Russia, Vladimir Putin, through which he announced that cryptocurrencies have value and that he accepts their use to make payments.
Conclusion
In this way, Bitcoin would be beginning to contribute to the environment and become something greener by eliminating the methane produced in these deposits.
It would also become very efficient as remote energy that no one wants to the point of wasting it by burning it would instead be used to secure and process hundreds of billions.
Therefore, it is expected that bitcoin mining in oil fields will become ubiquitous since it seems like an easy idea to understand. It could meet the requirements of some institutional funds that invest in bitcoin.
Cryptocurrencies will take over the digital market whether we like it or not; our reluctant position before social changes in this financial case are normal.
Little by little, we will digest the idea of a New Digital Market that will bring with it the currencies that will control the financial operations of the world, that is, cryptocurrencies.
