Category: Bitcoin Mining

Categories
Bitcoin Bitcoin Mining Crypto News

Wasted Natural Gas Flares: An Opportunity for Bitcoin?

Bitcoin miners are incentivised to find cheap and reliable sources of energy. The energy mix varies, but often it is “stranded” or intermittent. Either way, critics tend to draw the conclusion that Bitcoin is “not eco-friendly”.

But what if there was a way to mine bitcoin using energy that would otherwise be wasted? It’s already happening.

Natural gas flare. Source: Greenbiz

Texas Leading the Way

In a discussion panel held on October 8 at the Texas Blockchain Summit, US Senator Ted Cruz displayed a surprising level of understanding of Bitcoin mining energy dynamics and how flared natural gas could be used to mine bitcoin.

The idea is simple enough. Rather than burning it, natural gas flares can (and are) being used to mine bitcoin. In addition to offering a new revenue stream for natural gas energy providers, it also serves to reduce the company’s overall environmental impact.

It’s [the natural gas] being wasted because there is no transmission equipment to get that natural gas where it could be used the way natural gas would ordinarily be employed … Part of the beauty of that [mining bitcoin] is the instant you’re doing it you’re helping the environment enormously, because rather than flaring the natural gas you’re putting it to productive use.

Senator Ted Cruz

Speaking in relation to wasted flared gas, Cruz noted that over half was being burned in the western part of his home state, Texas. This, he suggested, was a boon to the energy industry, rather than a burden:

A lot of the discussion around Bitcoin views Bitcoin as a consumer of energy … The perspective I’m suggesting is very much the reverse, which is as a way to strengthen our energy infrastructure.

Senator Ted Cruz

Nic Carter provided a concise summary of the former Republican presidential candidate’s perspective:

Cruz expressed his belief that the US, but especially Texas, ought to be using natural gas to mine bitcoin, rather than flaring it into the atmosphere.

On the back of persistent and often loud ESG (environment and social governance) concerns, the bitcoin mining industry is gradually shifting towards a more eco-friendly energy mix.

Beyond natural gas flaring, we’ve seen countries like El Salvador invest in mining bitcoin using geothermal energy and, just last month, Australian bank Macquarie announced a deal to partner with Blockstream to establish solar-powered bitcoin mining facilities.

Chinese domination of Bitcoin’s hashrate was long regarded as an existential threat to the network. But with China’s most recent and perhaps most serious ban, that threat has dissipated. ESG remains the primary concern for mainstream institutional adoption. Those arguments are, however, gradually becoming weaker.

Categories
Bitcoin Bitcoin Mining Crypto News

El Salvador Buys the Dip Again, Now Owns 700 BTC

For the third time this month, El Salvador’s President Nayib Bukele has “bought the dip”, adding another 150 bitcoins to the Central American republic’s stash of 550.

The bitcoin price was around US$45,700 at the time of Bukele’s tweet announcing the latest purchase, down from earlier highs near US$50,000. “They can never beat you if you buy the dips,” Bukele told the El Salvadorean media.

El Salvador Starts With 200 BTC, Adds 500 More

On September 6, the day before bitcoin officially became legal tender in El Salvador, Bukele announced his government had bought 200 BTC, adding to its initial reserve of 200. Thus El Salvador became the first country in the world to publicly put bitcoin on its balance sheet.

After bitcoin was declared legal tender in El Salvador the next day, its price declined from around US$51,000 to $43,000 and Bukele announced that El Salvador had again bought the dip. That bumped up the country’s total bitcoin reserves from 400 to 550 BTC.

The latest purchase on September 20 took El Salvador’s bitcoin reserves to 700 BTC, with the price at US$40,683 at the time of writing.

After El Salvador, among interested second nations to publicly adopt bitcoin and flag bitcoin mining are Laos and Ukraine. Bitcoiners are watching and waiting to see who will be next to adopt bitcoin as nations opt to either compete or be left behind.

Categories
Bitcoin Mining Crypto News

Bitcoin Mining Supports Renewable Energy: Expert Explains Why Governments Need to Tax Carbon Emissions

In a recent video, Bitcoin advocate, tech entrepreneur and author Andreas M. Antonopoulos explains the correlation between bitcoin mining’s energy consumption and environmental regulation, and why “bitcoin isn’t the villain”.

Entitled The Real Truth About Bitcoin’s Energy Usage, the video prosecutes a case for why governments need to tax carbon emissions to subsidise energy production and thus enable bitcoin mining.

Andreas M. Antonopoulos. Source: peakd.com

“What both critics and supporters of bitcoin mining try to ignore is the fact that miners are anonymous,” Antonopoulos says in the video. “We don’t know exactly where the miners are, and what electricity they use.”

Antonopoulos states the obvious when he says mining can take place anywhere there is electricity, though the primary driver is how much that electricity costs. If it’s cheap, then miners will be attracted to it.

Waste Energy is the Cheapest Form of Electricity

“The cheapest form of electricity is waste energy, whether it be from the flaring of gas, hydro-electric, solar or wind, and it can be provided at very low cost,” Antonopoulos says. He might have added to that list geothermal energy from volcanoes and the like, which countries from Iceland to El Salvador (volcano mining) are already harnessing.

“If you have a government that is unconcerned about climate change and carbon output, and they don’t either regulate production to prevent pollution or tax the production of carbon, then bitcoin miners will locate there to consume that energy too,” Antonopoulos says.

“But if you tax carbon emissions, then a polluting energy source is no longer profitable to miners. The electricity cost is too high, forcing miners to migrate to places where there is renewable energy.

“It’s really not about demand. It’s about the quality of energy production. If governments regulate and tax carbon, then bitcoin demand actually supports and incentivises, and in a way subsidises, the installation of renewable energy.”

Bitcoin is neither good nor bad. It’s simply a demand for energy, and if it’s matched with politics that are environmentally friendly, then bitcoin mining is essentially green. Governments should be focused on having the political will to reduce pollution and damage to the environment. Bitcoin isn’t the villain here.

Andreas M. Antonopoulos, Bitcoin advocate, tech entrepreneur and author

In July, more than 25 bitcoin mining companies joined forces with the greening of bitcoin their common aim. This took place under the auspices of the Bitcoin Mining Council (BMC), founded by MicroStrategy CEO Michael Saylor and backed by the likes of Galaxy Digital and Hive Blockchain.

Categories
Bitcoin Bitcoin Mining Crypto News Ethereum Litecoin Mining Trading

Debt-Laden Laos Approves Crypto Mining for Economic Growth, Reverses Previous Ban

The one-party socialist government of landlocked South-East Asian country Laos has green-lit six domestic firms to trade and mine cryptocurrencies.

As named by government mouthpiece The Laotian Times, the companies that have been licensed are Wap Data Technology, Phongsubthavy Road & Bridge Construction, Sisaket Construction, Boupha Road-Bridge Design Survey, Phousy Group and Joint Development Bank. Only the latter, a state-backed lender, appears to have any financial background. 

Most of the others are construction or infrastructure-related firms. Phousy Group, for example, has been active in road and bridge building in Laos since 1998, mainly as a favoured contractor to the Laotian government.

All six companies have been given permission to trial mining and trading of digital assets including bitcoin, ethereum and litecoin. A commission led by the Laotian Ministry of Technology and Communication will set out a regulatory plan to be scrutinised by the country’s prime minister, Phankham Viphavanh, this week.

After Banning Crypto in 2018, Laos Changes Its Tune

The announcement comes less than a month after Laos’s central bank issued a warning to the public against trading digital tokens. The government issued a decree that effectively banned crypto in 2018 and repeated its stance as recently as last month.

The country’s rediscovered enthusiasm for cryptos follows the crackdown earlier this year on bitcoin mining by Laos’s nearest and biggest neighbour, China, ostensibly on power consumption grounds. 

The Nam Ou hydro-electric project on the Mekong River in Laos, established in 2016 with an installed capacity of 1,272 megawatts.

What Laos has going for it is that it is a hydro-electric superpower, making it an ideal potential home for power-hungry crypto miners. Its economy is based on harnessing hydro electricity from the country’s extensive river system and exporting two-thirds of its reserves to neighbouring countries Thailand, China and Vietnam.

Crypto Mining: A Ready Antidote to Foreign Debt?

For that reason alone, Laos is seen by the World Bank as one of the Pacific region’s fastest-growing economies, with annual GDP growth averaging 7.4 percent since 2009, though the nation is also mired in foreign debt.

Government powerbrokers may have one eye on developments in El Salvador, which officially made bitcoin legal tender this month and plans to harness the Central American republic’s abundant geothermal energy, derived from its many volcanoes, to mine bitcoin. Based on the current BTC price, this could earn the Salvadorean government more than A$1 billion per year.

Categories
Bitcoin Mining Crime Crypto News Mining

Government Employee Faces Jail for Installing Crypto Miners Inside Office Walls

An IT operations supervisor in New York state is being prosecuted for allegedly installing BTC mining rigs and other devices inside government offices, costing his Long Island civic employer thousands of dollars in electricity, according to a report last week by The New York Times.

Over $6,000 in Electricity Bills

Christopher Naples, 42, allegedly hid 46 mining devices in various areas in the Suffolk County Center in Riverhead. The Long Island resident now faces up to 15 years in jail for grand larceny, official misconduct, public corruption and computer trespass.

The Suffolk County Center now has to pay more than US$6,000 in restitution for the power used, but it’s likely Naples has cost the county thousands more as another 36 machines were later discovered.

Timothy D. Sini, the Suffolk County district attorney, said that the first 10 mining rigs discovered had been operating since early February, some of them hidden in at least six rooms – including beneath floorboards and in an unused electrical panel.

Mining cryptocurrency requires an enormous amount of resources, and miners have to navigate how to cover all of those electricity and cooling costs. [Naples] found a way to do it; unfortunately, it was on the backs of taxpayers.

Timothy D. Sini, district attorney, Suffolk County

Sini told The New York Times that Naples placed so many mining rigs inside the building that it required an “unusual level of expertise from investigators” to discover them. Several employees even complained about slow internet speeds and an unusual rise in temperature. Once the machines were removed, the temperature dropped by more than 20 degrees Fahrenheit (6.6ºC).

Miners Forced to Emigrate as Countries Tighten Mining Regulations

Mining cryptocurrencies such as bitcoin consumes a lot of electricity and can even cause massive power outages. Such was the case in Iran, where in June the government confiscated over 45,000 mining rigs due to high energy consumption sparking power outages across the country.

Other countries like China have been more aggressive toward miners. As Crypto News Australia reported, also in June, China’s State Council released a document saying it would “crack down on bitcoin mining and trading activities” in order to “prevent possible financial risks”.

As a consequence, miners were forced to set up shop overseas to continue their operations in more receptive environments.

Categories
Australia Bitcoin Bitcoin Mining Crypto News

Australian Macquarie Bank Invests in Green Bitcoin Mining Deal

Australian multinational investment bank and financial services giant Macquarie has formed a partnership with Blockstream to create a carbon-neutral bitcoin mine in the US.

According to a release from Blockstream, the crypto mining firm has teamed up with Macquarie to leverage its expertise in finance, energy and commodities markets and green infrastructure.

The initiative is targeting a greener approach to mining cryptocurrency and builds on Blockstream’s previously announced collaborations with Aker and Square to establish sustainably powered crypto mining facilities. Blockstream is currently one of the largest Bitcoin miners in North America.

In this pilot project, Macquarie will invest in the facility while utilising Blockstream’s expertise in exploring opportunities to provide renewable energy to power the mining process. With more than US$428 billion in assets, the Macquarie Group is one of the world’s leading investors in renewable energy infrastructure, with 44 gigawatts of generation under development, construction or operation as of March 31, 2021.

Macquarie’s experience and scale in traditional infrastructure investment, as well as commodity and energy markets, and Blockstream’s position as a leading Bitcoin miner and provider of Bitcoin-based technology solutions offers terrific potential.

Dr Adam Back, Blockstream CEO

Making Bitcoin Green

As bitcoin becomes more mainstream, its adoption has slowly grown from individuals to investment funds to entire countries. With more than 25 bitcoin mining companies joining forces to make bitcoin greener, the push toward a carbon-neutral bitcoin is well under way.

Having made BTC official legal tender this week, El Salvador has also resolved to build a 100 per cent green mining facility using geothermal energy from the the Central American republic’s 20 active volcanoes.

As bitcoin progresses on its journey towards widespread acceptance, it remains to be seen if the digital asset can uplift those countries whose currencies have depreciated to the level where they’re no longer worth holding on to.

Categories
Bitcoin Bitcoin Mining Crypto News

Today Bitcoin is Legal Tender in El Salvador, What You Need to Know

On June 9, the El Salvador legislative body officially voted in a bill adopting bitcoin as legal tender. Today, that law comes into force.

Background

Almost 20 years ago, El Salvador adopted the US dollar amid ongoing economic woes in the Central American republic. Despite intending to bring stability, it ultimately hurt the lower economic strata of society most. At the time, much like the recent bitcoin protests, some felt that the decision was rushed without sufficient consultation or education of the broader populace.

In an interview in June, President Nayib Bukele provided some context behind the move, saying it was ultimately for the benefit of all Salvadorean citizens.

The purported benefits include:

  • Receiving remittances at the speed of light with almost no costs, compared to the slower and more costly fee structures of Western Union and the like. Importantly, personal remittances account for almost a quarter of El Salvador’s GDP.
  • Providing financial inclusion to the 70 percent of the population who remain unbanked.
  • Becoming less dependent on the output of new US dollars and resultant inflation due to an unprecedented increase in the money supply; in short, El Salvador wants to take back some control of its monetary system as it derives no benefit from the increased supply of US dollars, only the downside.
  • Increased levels of financial investment and the attraction of global talent, particularly when coupled with forthcoming residency-by-investment laws.

How Will It Work?

One of the more controversial elements of the newly enacted law is Article 7 which provides that from September 7, all businesses in El Salvador are required to accept bitcoin for the sale of goods and services. Despite this provision, President Bukele and Finance Minister Alejandro Zelaya have both declared that bitcoin will be “totally optional”.

The use of bitcoin will be optional. Nobody will receive bitcoin if they don’t want it […] If someone receives a payment in bitcoin, they can choose to automatically receive it in [US] dollars.

President Nayib Bukele

To provide for those who do not wish to hold bitcoin and to otherwise manage its volatility, a US$150 million trust fund has been set up to instantly convert bitcoin to US dollars, effectively transferring the volatility risk to the trust. From time to time, the trust would replenish its US dollars through the sale of bitcoins.

If there’s an ice-cream parlour [and the owner] doesn’t really want to take the risk, he has to accept bitcoin because it’s a mandated currency but he doesn’t want to take the risk of convertibility, so he wants dollars deposited in his banking account and when he sells the ice cream, he can ask the government to exchange his bitcoin [for] dollars. Of course he can do that in the markets also but he can ask the government to do it immediately.

President Nayib Bukele

To encourage widespread adoption, the country has installed more than 1,000 bitcoin ATMs and offered US$30 in bitcoin to citizens who download the government’s voluntary digital wallet.

As a signal of support, a three million-strong Reddit community in Brazil has pledged to purchase US$30 each on September 7, a day that happens to coincide with the country’s independence day.

Aside from the purported benefits to its citizens, El Salvador is also looking to become a leader in 100 percent eco-friendly “volcano” bitcoin mining, which promises to provide an economic windfall for the nation, generating up to 20,000 BTC per annum according to some estimates.

Categories
Australia Bitcoin Bitcoin Mining Crypto News

Bitcoin Mining Power Increases in Australia as Mawson Buys 17,352 BTC Miners

Sydney-based crypto mining company Mawson Infrastructure is looking to increase its mining power in Australia by purchasing 17,352 ASIC bitcoin mining rigs from Chinese manufacturer Canaan Creative.

On August 12, Mawson announced it had purchased an additional 17,352 latest-generation Avalon A1166 and A1246 mining rigs, which will be deployed across the company’s US and Australian operations in late 2021 and early 2022. 

Mawson Sets 5000 HP Goal by 2022

The company is looking to reach its goal of 2000 PH (petahashes) by the end of 2021, and 5000 PH by 2022. If all machines are deployed successfully, Mawson’s current hashrate capacity could increase by 1,500 PH.

Coupled with our extensive power infrastructure across the US and Australia, we look forward to having these units online in late 2021 and early 2022. We again reiterate our end of CY21 goal of 2000 PH and end of CY22 goal of 5000 PH, and look forward to updating shareholders further on hardware purchases in due course.

James Manning, Mawson founder/CEO

Chinese bitcoin mining companies have had a hard time with their businesses thanks to the PRC government crackdown on mining this year, and Canaan is no exception. The company has had to move its operations across borders, mostly to Kazakhstan.

The recent purchase comes in handy for both the mining company and the manufacturer, as hardware supply is becoming harder to get.

We are very happy to have contracted another large order with Canaan, who have been fantastic partners to date. Canaan has delivered consistently and on time, and in an environment where ASIC bitcoin mining hardware supply is once again becoming harder to secure, we are delighted to further cement our partnership.

James Manning, Mawson founder/CEO

As Crypto News Australia revealed a month ago, Mawson Infrastructure acquired 90 percent of Luna Squares, a major US bitcoin mining group, and it plans to fully acquire the company over time. The Canaan deal only consolidates its mining armoury.

Categories
Bitcoin Mining Crypto News

Bitcoin Miner Fatally Electrocuted by Faulty Homemade Rig

A 26-year-old Thai bitcoin miner has died while trying to power up his computer to generate more cryptocurrency.

Danai Makmek was electrocuted on July 20 in a failed attempt to reactivate a faulty hard drive. It’s believed his homemade rig exploded and a concurrent power surge killed the crypto enthusiast.

The home bitcoin mining rig set up by Danai Makmek. Source: Viral Press/Australscope

The body of Makmek, shirtless and clad only in a pair of blue shorts, was found slumped over his computer by his older brother, Apiwat, on the morning of July 21.

Time Is Money But Impatience Can Cost a Life

Two days previously, Danai had asked Apiwat for help to fix his ailing rig, fearing he could lose valuable mining time. Apiwat said he would accompany Danai to a computer repair shop but the latter decided he couldn’t wait and tried to fix the problem himself.

Apiwat Makmek said his brother could not afford to miss a day’s mining, potentially worth thousands of dollars in bitcoin.

I warned him but he could not wait. I think he panicked and stayed up the whole night trying to fix it. The computer was modified to give it more power. I do not think it was safe …

Apiwat Makmek
Danai Makmek’s body is removed by Thai paramedics. Source: Viral Press/Australscope

Emergency services were called and unsuccessfully tried to revive Danai. Police Colonel Santi Shoosheud said there were no signs of forced entry into Danai’s room and that he had no suspicious injuries other than those directly related to his electrocution, which included third-degree burns.

Police Follow Hot Trail to Bitcoin Mining Operation

Two months ago, English police uncovered a bitcoin mining operation when their drone detected heat emanating from a warehouse in the West Midlands. Suspecting a cannabis farm, they were able to seize around 100 bitcoin mining devices running on stolen electricity. Fortunately, no one was electrocuted in this instance.

Meanwhile, a worldwide semiconductor shortage has been affecting crypto mining operations along with a host of related industries, specifically the production of computer components.

Categories
Bitcoin Bitcoin Mining Crypto News

Nuclear Powered Bitcoin Mining Might Soon Be a Reality in Ohio

As the green Bitcoin trend continues, the spotlight now shines on nuclear power as a means of generating sustainable, carbon-free energy for bitcoin mining.

Energy Harbor Corp, an independent power producer, stated earlier this week that it had entered into a five-year partnership with Standard Power. The deal is to provide carbon-free electricity from its nuclear fleet to Standard Power’s Bitcoin (BTC) mining centre, which is set to begin at the end of this year, according to a press release.

We are happy to partner with customers who are focused on minimising their impact on the environment while driving a new clean energy future in our local Ohio economy.

John Judge, Energy Harbor President and CEO

The collaboration will allow Standard Power, a hosting provider for bitcoin miners and other data-processing companies, to turn an abandoned paper mill in Coshocton, Ohio, into a mining facility.

We selected Ohio because of its low electricity costs with availability of carbon-free sources of energy.  By partnering with Energy Harbor, we have proactively structured our hosting capabilities to ensure that 100 percent of the power associated with this facility is carbon-free.

Maxim Serezhin, Standard Power CEO

Not the Only Nuclear Game in Town

Oklo, a nuclear fission startup, also has plans to provide clean power to its new bitcoin mining partner, Compass. With a 20-year contract, Oklo plans to supply Compass with 150 megawatts of clean power in the first phase of the partnership.

Compass operates hosting facilities where individual miners can have their miners set up and operated for them, and it is working to be 100 percent carbon free.

Oklo is part of a wave of companies developing smaller reactors that it claims would be faster and cheaper to build than conventional nuclear plants. Such reactors could be relatively small and would generate a lot of power without harmful emissions.

The company is still in the process of being approved by the Nuclear Regulatory Commission (NRC) for its small reactors, which could run on radioactive waste. The first Oklo reactors will be deployed in 2023 or 2024 and the costs will be “considerably” less than the energy sources Compass plugs into now, according to Compass founder and CEO Whit Gibbs.

Assuming it receives approval, Oklo will be looking at sites in Idaho, as well as in Alaska.

Bitcoin Energy Concerns Spurring Green Partnerships

During the past few months, the Bitcoin network’s contentious power consumption has received a lot of attention from mainstream media. In turn, this has sparked numerous green partnerships such as those mentioned above, as well as last month’s news of Square investing in solar bitcoin mining.

Bitcoin miners are constantly trying to find ways to decrease their operational costs. By directing themselves toward the cheapest energy sources available, they can ensure lower operating costs, increase longevity, and add security to the Bitcoin network.

The incentives that Bitcoin offers in return, by just running a program on a machine, have caught the attention of both power producers and tech companies alike.