That's one of the more dystopian things I've read this week.

That's because you have not looked around very much and did not understand what would have been done with this gas had it not been used in a generator to power that $hitcoin-mine. As to not looking around I'd say the malversations around all those (soon-to-be) warring nations far eclipse whatever can be achieved by a single funny-money-mine in the backwoods of the Republic of Texas. As to not understanding what would have happened had they not hooked up that generator to the gas line there it should be enough to have a look around an oil extraction area at night where the darkness is often shattered by bursts of reddish light coming from flares. Flares which burn natural gas (and whatever else happens to come up in gas form). Reddish light due to the incomplete combustion inherent in the technology and the gas mixture. Here that gas is burned in a generator which both provides for a more complete combustion as well as produces power to run that mining rig. The net result is less air pollution due to better combustion of spill gas, less light pollution due to the absence of flares plus whatever money that mining operation brings in. There's plenty of flares to go around for mining operations, including those at refineries - have at it. Any $shitcoin mined this way is not mined using power which would otherwise have gone to more useful applications.

And the energy from these flares can't be used for actually useful applications, because?

Because Ted Cruz is now getting in on the cryptogrift, acquiring Bitcoin and tweeting about Bitcoin while voting to keep it underregulated.

https://www.vice.com/en/article/88gvmv/ted-cruz-bitcoin-boos...

I am interested in learning what bitcoin regulations you would find useful. And have you submitted any BIPs for your ideas? https://github.com/bitcoin/bips