Bitcoin
BTC$30 078.86

-3.11%

Ethereum
ETH$2 040.08

-4.19%

Tether
USDT$0.998945

-0.01%

USD Coin
USDC$1.000508

-0.02%

Binance Coin
BNB$299.90

-2.87%

XRP
XRP$0.427645

-3.01%

Cryptomining Using Gas? Winklevoss Are In


13 May 2019

#Bitcoin

The Winklevoss brothers, who are the well-known digital entrepreneurs, cryptocurrency apologists, and bitter adversaries of Mark Zuckerberg, invested a hefty sum in what is believed to be the innovative way of mining cryptocurrencies. A private equity firm Winklevoss Capital Management LLC, headquartered in Dallas, Texas, provided $4.5 million in funds to Crusoe Energy Systems Inc., a company that assists oil producers across North America to lower the flaring on natural gas and eliminate the excessive carbon emission.

Crusoe has developed a mechanism for turning the unexploitable natural gas into electricity through the use of specially designed mobile data centers which operate directly at the well site. The obtained electrical power will be used to facilitate cloud computing and cut the cost of cryptocurrency mining in a significant way. Apart from Winklevoss Capital, Cruscoe received substantial funding from Bain Capital Ventures, Founders Fund Pathfinder, and Dragonfly Capital Partners.

The burning problem of flaring


The main reason why this project has drawn heightened attention from the powerhouses of venture capital investment is that Crusoe may have developed a solution to a problem that had been nagging the entire oil industry for decades.

The producers are forced to burn large volumes of natural gas which occur as a byproduct of oil extraction because they simply don’t have the necessary pipeline networks, as well as the accompanying infrastructure, to transport the excess gas to the potential purchasers. As a result, the operating companies must pay third-party contractors to relieve them of the surplus of that fossil energy source, or resort to the mentioned method of burning gas directly at the drilling site, also known as flaring.

Despite the fact that flaring seems to be the simplest fix, it often faces severe regulations as well as the tenacious oppositions from various environmental groups - and for a good reason.

According to the study conducted by the World Bank, the volume of global flaring has been gradually increasing over the last years, reaching 141 billions of cubic meters in 2017, which causes the emission of nearly 350 million tons of carbon on a yearly basis that does an immense harm to the environment.

In addition to the environmental concerns, there is an economic dimension to this problem because the flared gas contains vast amounts of energy that must be put to good use. Prior to the introduction of mobile data centers by Cruscoe Energy Systems, millions of dollars have been going up in smoke. 

The Cruscoe solution


The Cruscoe’s modular mobile data center is packed in a 20-foot shipping container that feeds off the electricity generator which runs on natural gas that is being piped into this unit directly from the oil production site. The company has been seeking funding to expand its scope of operations and find application to the produced electricity. The Winklevoss brothers might have invested in a solution that will help satisfy the Bitcoin’s appetite for electricity, which currently amounts to 22 TWh per year.

Author: Alex Paulson for Crypto-Rating.com

Related

Has Bitcoin reached the bottom?
Has Bitcoin reached the bottom?
Bitcoin's Price Plunges Below $34,000
Bitcoin's Price Plunges Below $34,000
Bitcoin stabilised but has trouble to reverse strongly
Bitcoin stabilised but has trouble to reverse strongly
Bitcoin will fall until the bulls capitulate
Bitcoin will fall until the bulls capitulate
The culmination of the battle for the trend in Bitcoin
The culmination of the battle for the trend in Bitcoin
Bitcoin undecided on a scenario for May
Bitcoin undecided on a scenario for May
Bitcoin: How the $1 million rally begins
Bitcoin: How the $1 million rally begins
Bitcoin's last hope for $38K
Bitcoin's last hope for $38K
Bitcoin slips to the lows of the year
Bitcoin slips to the lows of the year

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64% 68 $30 078.86 -3.11% -3.12% $572 752 759 821 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 64.8% 69 $2 040.08 -4.19% -10.99% $246 452 104 779 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94% 1 $0.998945 -0.01% -0.10% $75 672 207 650 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000508 -0.02% 0.03% $51 903 555 902 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 69.6% 67 $299.90 -2.87% -3.10% $48 967 465 897 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 68.4% 65 $0.427645 -3.01% -14.63% $20 673 702 175 XRP 7 days price change
7 Cardano (ADA) ADA Cardano predictions 64% 69 $0.566998 -2.61% -10.70% $19 137 629 395 ADA 7 days price change
8 Solana (SOL) SOL Solana predictions 61.2% 80 $54.88 -3.41% -17.86% $18 502 523 504 SOL 7 days price change
9 Binance USD (BUSD) BUSD Binance USD predictions 94.4% 1 $1.001917 0.16% 0.06% $18 021 373 696 BUSD 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 67.2% 70 $0.088106 -3.91% -19.04% $11 689 066 228 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 59.6% 80 $10.80 -6.53% -3.83% $10 663 415 500 DOT 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 62.4% 81 $33.64 -7.03% -24.96% $9 052 857 409 AVAX 7 days price change
13 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 69.2% 68 $30 052.34 -3.06% -3.49% $8 534 982 346 WBTC 7 days price change
14 TRON (TRX) TRX TRON predictions 69.2% 65 $0.069883 -2.03% -7.52% $6 832 451 366 TRX 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 63.6% 79 $0.000012 -4.41% -19.78% $6 682 885 305 SHIB 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.