By
Mayowa Adebajo
May 14th, 2024
Bitcoin (BTC) mining might be the long-awaited savior to the falling oil industry and might also help in stamping the legitimacy of the asset in North America and in other corners of the world.
Bitcoin (BTC) mining has been a very lucrative business for most huge firms in the greater Asian region. However, with the onset of the coronavirus crisis, things have been destabilized and the serendipity of events have made the rest of the world to diversify their businesses. As the world struggles to contain the deadly coronavirus, the lockdowns are increasing by the day and the likelihood of extension on the cards.
Bitcoin (BTC) mining rewards the miners after solving algorithms that help in keeping track and secure transactions in the Bitcoin blockchain. However, the business is very energy-consuming, where a lot of power is needed to keep up with the hash rate.
Since the process is automatic and can be done with less manual labor, oil and gas companies can tap into the business to balance their ledger at these times when they are mostly counting losses.
Bitcoin Mining and Oil Industry in North America
According to Marty Bent, the editor-in chief of Marty’s Bent, and a Bitcoin podcast host, it is high time the North American entrepreneurs started building out the physical infrastructure that supports the network.
He suggested that the oil fields across the continent, which waste a lot of byproducts that could otherwise be consumed and turned into value, and also those which need to bolster their revenues, need to take advantage of the Bitcoin mining industry.
According to him, the only best alternative that the oil and gas companies could use to increase their revenue is to turn the wasted gas into natural gas liquid for sale in the market. However, with the declining price for natural gas over the decade, Bitcoin mining comes in as the best alternative for them.
In relation, Bitcoin mining could fetch five times higher than the value the natural gas would if packaged and sold in the market. And with the Bitcoin price bullish in the long term, the advantages continue counting.
Bitcoin mining will become more expensive to run once the halving event takes place in the next few weeks. The reward system will cut the Bitcoin production by half, and skyrocket the competition among the miners. This will, in turn, increase the demand for the asset, hence skyrocket the price to an all-time high with time.
One of the advantages that the Bitcoin community will get from the oil industry backing them up, will be one that will eradicate their biggest worry, state crashing bitcoin. This is because the oil industry has a very huge influence in Capitol Hill, and the fact that they are profiting from the Bitcoin (BTC) mining industry will be enough defense.