The United States filled the huge void in Bitcoin (BTC) mining left by China at the end of June 2021. Despite the lingering rumors of high power consumption, officials in Texas, one of the fastest growing cryptocurrency mining hubs in the United States, now believe that crypto mining operations can, in fact, reap a symbiotic relationship with the energy industry.
A bulletin from the office ofl Texas Comptroller revealed the state’s pro-cryptocurrency stance with the intention of embracing long-term miners and operators. Clearing up the general misunderstanding about Bitcoin’s energy consumption, the note highlighted that, unlike “manufacturing facilities or industrial chemical plants, which can be expected to exist for decades,” cryptocurrency mining facilities are not large electricity demands on the grid.
With more cryptocurrency miners arriving in Texas, energy demand remains a concern as the sudden surge threatens to upset the balance between supply and demand. While other energy-demanding industries often continue production amid market fluctuations, One of the concerns raised in the newsletter by Texas Research Associate Joshua Rhodes was:
“The difference is that Bitcoin miners can open so fast and they can disappear so fast depending on the price of Bitcoin.”
Given the uniqueness of the market for cryptocurrency mining, Texas officials believe miners can participate in demand response programs, which involve turning off power to miners during peak demand. This process is widespread in energy-intensive industries such as petrochemical plants.
Additionally, the study anticipated that increased mining operations could drive more energy infrastructure, especially in remote areas of West Texas.
A prolonged bear market reduced mining revenue to record lows in June 2022. However, data from blockchain.com showed that BTC mining revenue soared nearly 69% in one month: from $13.928 million on July 13 to $23.488 million as of August 12.
Additionally, the decline in mining equipment prices has allowed BTC miners to upgrade and expand their mining equipment in their quest to grab a piece of the last 2 million BTC left to be mined.
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