Bitcoin launched in 2009 as the world's first cryptocurrency. It's a decentralized digital currency that is secured by a global network of users who are participating in a process called mining.
Bitcoin mining is the process of running specialized bitcoin software, which aims to solve a complex mathematical equation. Whichever computer solves the equation first is awarded the creation of the next block in the blockchain, and is thus paid a reward in bitcoin.
The only problem with the mining process is that it consumes a lot of power. Luckily, users have started natural gas bitcoin mining, in order to switch from burning fossil fuels to using renewable, clean energy to power the bitcoin network.
Are you interested in mining bitcoin, earning extra income, and doing so responsibly by using renewable resources? Keep reading below to learn how you can start bitcoin mining using natural gas power.
1. Quality Fuel Fas to Fuel a Genset
The benefits of natural gas-powered bitcoin mining are twofold. First, if you can get natural gas at the source, it's much cheaper than most electricity across the US.
As a bitcoin mining operation, the cost of power is one of the biggest factors when determining profitability. Cheap power means money is made in any market.
Second, natural gas is released into the atmosphere during the crude oil mining process. At most of these oil rigs, mining operations are only after the crude oil and can't set up a pipeline to move the natural gas.
So it's either released directly into the air, which is horrible for the planet. Or it's burned in a process called flaring. It's better than nothing, but not great from an environmental perspective.
But if you bring your bitcoin mining operation directly to these oil rigs, you can set up your bitcoin mining by flared natural gas.
Mining operations are looking for the most economical way to cut natural gas emissions since they can't use or sell the gas. By offering to burn their gas and pay them for the privilege of doing so, you get access to cheap, quality power.
With this unique partnership, bitcoin is reshaping the oil and gas industry as we know it.
2. Natural Gas Generator for Bitcoin Mining
To start bitcoin mining powered by flared natural gas, you'll hook up a natural gas generator to your methane line. This Genset will convert the gas to electricity.
It does this through combustion. The benefit is that all of the gas is combusted, and none of the raw gas is released into the atmosphere, unlike flaring.
If setting up multiple data centers at a site, you'll want to put an individual generator in each data center. You'll then pipe the gas to each data center. So each one is a self-contained system with its own electrical source.
The good news about setting up your own rigs like this is that they aren't permanent. When you're done at one location, you can unplug and move your equipment to the next site, so you're never sitting on sunken costs.
3. Datacenter to House, Cool, and Distribute Power
With your power supply in place, it's time to build out your data center. Some people have used shipping containers, rigged with shelving units to store ASIC miners.
Others use mobile trailers. A mobile option like a trailer or container is ideal when bringing your mining rigs to an existing mining site.
Or you can purchase prebuilt, mining-specific data center huts and sealed enclosures.
Only top-of-the-line materials should be used, as you are storing tons of expensive mining rigs inside. The data centers need to withstand harsh conditions, since they are located outdoors, in remote parts of the country, such as rural Texas, across the Great Plains, or in the Rockies.
Your data center needs to seal out moisture, snow, and debris to keep your mining rigs up and running 24/7, all year long.
The data center will need to have vents and fans in place in order to move heat out of the data center. ASIC miners generate a lot of heat. They require little maintenance as long as they are properly ventilated and kept cool.
These data centers will also be extremely loud, depending on how many miners you house inside each one. If you're near any homes or other commercial operations, it can help to add a layer of soundproofing. A wall of hay bales near your data centers can soften the noise quite a bit.
4. ASIC Miners for Bitcoin Mining Natural Gas
Once you have your data centers in place, with a generator providing a steady power supply, you can outfit them with bitcoin mining equipment.
The most efficient mining rigs come from Antminer. New models come out on a regular basis, each with varying hash rates. The higher the hash rate, the more bitcoin it will ultimately generate. Antminer rigs can cost between $5,000 and $25,000 apiece.
Whatsminer is another brand that manufactures plug-and-play bitcoin mining equipment that is on par with Antminer. Depending on the state of the market, mining equipment may be hard to come by. You can also buy used and refurbished equipment and replace your miners over time.
5. 24/7 Internet Connection
The bitcoin miners need to be connected to a computer that is running the bitcoin blockchain software. In order to send the hash power to the appropriate place, you need to keep your rigs online at all times.
This can be a challenge since oil wells are far from metropolitan areas. You'll need to either set up a satellite internet connection or ensure you have reliable cellular connectivity.
Start Natural Gas Bitcoin Mining Today
Bitcoin mining is a huge market. And with a limited supply of bitcoin and increasing demand, the price will continue to rise to make it more profitable in the future, not less.
Want to start your natural gas bitcoin mining operation today? Gasbox is here to make the process easy. If you're interested in the passive approach, you can invest in our existing mining operation.
Or you can find a mining operation with natural gas ready to burn and build your own mining center. If you need help getting up and running, then fill out our contact form here.