After several media reports claimed that Saudi Aramco was looking at Bitcoin, the oil giant was forced to issue a statement denying the rumors. The reports picked up steam after an interview with Ray Nasser, a Brazilian Bitcoin miner, was posted on YouTube.
The Ray Nasser Interview With Bitcoinheroes
The rumors about Saudi Aramco’s interest in Bitcoin mining started after the broadcast of an interview with Ray Nasser, a Brazilian Bitcoin miner. In the interview with the Bitcoinheroes Youtube channel, Nasser stated,
“We are negotiating with Aramco. All black liquid [oil] that comes out of the desert belongs to this company. All the flared gas they’re not using, and that’s public information, I can tell you, it’s enough to ‘power up’ half of the Bitcoin network today, from this company alone.”
The report also claimed that Aramco could use the excess gas generated from oil production and utilize it towards Bitcoin mining. Instead of simply disposing of the by-product of oil mining, the company could utilize them towards the mining of digital currencies.
“Aramco needs to burn this flared gas. She needs to get rid of this gas that is a by-product of their oil mining, they do. What if you find a way to make money while doing this?”
Aramco Issues Denial
Saudi Aramco, on its part, moved quickly to deny the rumors about the company planning to foray into Bitcoin mining by issuing a response to the rumors,
“With reference to recent reports claiming that the company will embark on Bitcoin mining activities, Aramco confirms that these claims are completely false and inaccurate.
A Case For Mining
It is not surprising why the interview generated a slew of rumors about Aramco pondering Bitcoin mining. Bitcoin mining requires a significant amount of energy, and Saudi Aramco generates a huge chunk of energy as a result of its oil and gas operations. It is possible, hypothetically, that Aramco’s energy through gas flaring can be utilized for bitcoin mining.
Already Involved With Blockchain Technology
According to reports in Arab News, Saudi Aramco is already utilizing blockchain technology to improve the efficiency and safety of its operation. Blockchain technology also helps Aramco lower its operational costs. Currently, the company has made significant investments in Data Gumbo and VAKT, two blockchain platforms that help the company eliminate its paper-based processes.
“Aramco is investing significant amounts in blockchain technology and is working closely with its business partners to encourage and prepare them for adopting the technology. Aramco deployed its corporate blockchain platform in partnership with IBM, which enables Aramco to scale up its blockchain solutions.”
Gazprom’s Foray Into Crypto Mining
Had Saudi Aramco dived into the crypto mining business, it would not have been the only oil giant to do so, with Gazprom, the world’s 10th largest oil producer already into cryptocurrency mining. Gazprom has already successfully tested the use of gas that would otherwise have been wasted to generate electricity directed towards cryptocurrency mining.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.