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Author: Admin | 2025-04-27
British company FMI Minecraft is working on a project to mine the cryptocurrency Bitcoin using natural gas from Argentina’s Vaca Muerta. The project would be in the Zapala free trade zone in the province of Neuquén and source gas from the Vaca Muerta, or ‘Dead Cow’ shale formation. “Vaca Muerta is great because there are more than 20 producers of good quality gas,” FMI partner Eduardo Meyer told NGI. The mining operation would initially involve 100 MW of gas-fired power, which would be expandable to 250 MW. Meyer said Argentina has “good suppliers of turbines and generators, and human resources.” He added, “there is a big oil and gas scene in Argentina.” The project would expand local gas transport capacity, provide jobs, and all suppliers would be local, Meyer said. “Our plan is to work with the local university to create a service hub to fix mining machines.” With China outlawing cryptocurrency, most Bitcoin mining is done in North America, but that market has become saturated, Meyer said. Natural gas for power is cheap in Argentina and the free trade zone makes the project attractive. Bitcoin mining is the process through which specialized computers verify bitcoin transactions. The process allows miners to add “blocks” of the distributed public ledger, aka the blockchain, on which transactions are recorded. “Mining is the way we can make the network safe and secure,” Meyer said. “By doing so the miner receives an incentive as the network mints a new bitcoin as payment to the miner.” The key to the success of a project is access to the mining machines, which mainly come from China and are backlogged, Meyer said. The other essential component is energy. The mining process is highly energy intensive. In the course of the last year, Bitcoin mining consumed 204 TWh, as much energy as the country of Thailand, according to a study by technology analysis platform Digiconomist. “But traditional banking uses a lot of energy too,” Meyer said. “Bitcoin uses a lot of energy, yes, but it’s a more intelligent system.” Gaining Ground In Latin America Cryptocurrency has become somewhat mainstream in the United States, with everyone from celebrities Matt Damon to Larry David promoting it. But it’s catching on in Latin America too. In a region with a history of high inflation and currency devaluations, cryptocurrency has been hailed by some as the future of financial transactions. El Salvador has adopted Bitcoin as legal tender. Argentina’s President Alberto Fernández has said it could help fight the nation’s torrid history with inflation. Meyer sees Bitcoin as more of an asset than a currency, and a “good hedge on inflation.” According to blockchain data platform Chainalysis, Brazil saw the highest value
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