Oil wells produce natural gas as a byproduct, and when there's no pipeline nearby to carry it anywhere, standard practice is to burn it off at the wellhead. Pure waste, permanently, with nobody buying it. A shipping-container generator and a rack of miners can be dropped at that same wellhead instead: • The gas gets burned for electricity instead of burned for nothing. • The miners turn that electricity into blocks, no pipeline required. • The well operator gets a buyer for gas that had zero buyers a year earlier. Nobody's mining bitcoin here to save the planet. The economics just happen to line up. Stranded energy with no other customer, a miner that doesn't care where it's plugged in, and a fuel source that was getting burned off regardless of whether anyone used it.
Jeff SwansonShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.