Argentina’s presidential hopeful Sergio Massa has proposed utilizing excess natural gas from the Vaca Muerta oil fields to mine Bitcoin. However, this proposal has faced opposition from the local crypto community, who are wary of the government’s direct involvement in Bitcoin mining.
The Vaca Muerta Formation
In late October, Massa presented his plans to use surplus gas from the Vaca Muerta Formation, also known as ‘Dead Cow.’ This area is renowned for its major deposits of shale oil and shale gas. Computer scientist Santiago Siri discussed the proposal with Massa during a meeting, where he emphasized Bitcoin’s characteristics, including its potential as digital gold. He also highlighted that Bitcoin is a deflationary currency with a limited supply of 21 million units. Massa showed interest in mining Bitcoin using the residual gas from Vaca Muerta.
Criticism from the Crypto Community
The meeting between Massa and Siri received significant criticism from the local crypto community, especially after Siri presented a prototype of Argentina’s Central Bank Digital Currency (CBDC). Comparisons were made on social media between the CBDC and UBI, a token launched by the Argentine scientist, which lost 99% of its value within 24 hours of its launch in 2021. Critics labeled the meeting a “rug pull,” expressing concerns about the government’s involvement in cryptocurrency.
- A Venezuelan developer, Francisco Calderón, expressed his skepticism on Twitter, stating, “God raises them and they get together,” implying that politicians may create alliances for personal gains.
- Another user raised “bigger red flags” regarding the Massa-Siri meeting, signaling potential risks and negative consequences.
To further discuss the topic, a discussion was held on November 1st in X-Spaces, where Bitcoin miners and other experts participated. The general consensus among the speakers was that Bitcoin mining should not be managed by the State. They highlighted various challenges of setting up a mining site at Vaca Muerta, including the high energy consumption and the need for a robust internet connection.
According to José María Sarasola, CEO of Cryptogranjas, a mining startup in the Vaca Muerta area, the excess gas “means that the well has to be closed.” The startup uses organic and industrial waste, such as pig and cow excrement, to produce energy for digital mining.
