From the report of IEA, it came into understand that a recession is undergoing the international oil market. The pandemic, COVID-19, existing at present is expected to cut oil demand by 1.1 mb/d. Bitcoin miners residing in North America running businesses on fossil-foil extraction are much more excited as oil prices are descending to record lows.
Reduction in gas emission has become a core reason to oil-extraction companies to save the environment right now. Some bitcoin mining firms actually capture the excess gas to fuel hundreds of bitcoin-mining computers. The waste coming from oil market are being brought into operation by bitcoin miners which can be stopped by the collapse shut down of oil market.
The profit of bitcoin mining depends on the price of Bitcoin which has been proved by the recent March price drop of Bitcoin leaving bitcoin mining to be unprofitable and causing others to be shut down. Oil-abstraction waste products snatched away the sight of entrepreneurs as cheap power sources.
Dj Bitwreck, a resident of Texas and a bitcoin miner, is building a new hardware for capturing flare gas. His whole team requires five months to build these devices. The man is seeking to make an addition of 1 megawatt of power from flare gas. The want to find out sites that would let them come in and put a generator and a shipping-container-size mining hut at the flare site.
As we find gas as a byproduct of oil, they won’t have this to consume if oil companies stop operating. There is no point in miners pivoting strategies until bitcoin halving as per Bitwreck.
How long to wait?
An uncertainty is vivid in mind in the decision that what if oil and bitcoin prices stay low along the year. Miners are excited too much about it. All the startups aforementioned above remains lean and moderately profitable and expecting the upcoming halving can bring the blessing.