When the propane gas is released, it evaporates. The “freezing” that you see where it comes out of a bottle is actually the moisture in the atmoshere condensing on the outside of the valve due to the cold created from the gas being released.
Virtually any substance, when being compressed heats, and when released cools. This is known as the Jules-Thompson effect. This happens even if the medium being compressed is air. The amount of “freezing” that occurs is proportional to the amount of air being released and the time that it is released. If the crystals seen on the outside of the bottle were, in fact, propane; then the valve would be leaking and the bottle would empty.
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