Analysts say Venezuela’s reopening oil industry could pave the way for a flared-gas Bitcoin mining boom, as large volumes of wasted natural gas could be redirected into on-site mining operations.
Local experts estimate that around 25% of Venezuela’s gas output is flared, with roughly 13,000 cubic metres lost that could instead power mobile Bitcoin mining fleets near oil wells.
“Following models like those in Argentina, we could install modular plants at the wellhead to generate electricity immediately, injecting direct capital into the national economy,”
Said local miner, Demerson David.
Argentina has already demonstrated the model, with firms such as Tecpetrol reporting higher output after deploying crypto mining at oil fields in the Vaca Muerta formation.
Venezuelan analyst Sultan Bitcoin said the country burns enough energy to power all of Central America, arguing that Bitcoin mining could monetise stranded gas while infrastructure is built.
“The great thing about Bitcoin mining is that it allows us to install containers with the mining equipment right there in the industrial zone, without the need to build very long transmission lines immediately,”
He said.
However, Sultan warned that opaque regulation remains a barrier, adding that investors need guarantees their equipment will not be nationalised or shut down arbitrarily.
At the time of reporting, Bitcoin price was $66,197.56.