By the end of June 2021, the vast void that China had left in Bitcoin (BTC) mining had been filled by the United States, Cointelegraph noted.
Officials in Texas, one of the US’s fastest-growing crypto mining hubs, now think that mining operations can really forge a symbiotic connection with the energy sector despite impending reports of high power use. The Texas Comptroller’s office disclosed its pro-crypto attitude in a newsletter, with the aim of welcoming long-term miners and operators. The fiscal note emphasised that, in contrast to “manufacturing facilities or industrial chemical plants, which can be expected to be around for decades,” cryptocurrency mining facilities do not place significant electrical demands on the grid, dispelling the common misconception about Bitcoin’s energy consumption.
Concerns about power consumption linger as more cryptocurrency miners move to Texas, as the abrupt increase risks upsetting the equilibrium between supply and demand. One of the issues mentioned in the newsletter by Texas-based research associate Joshua Rhodes was that other power-hungry businesses frequently continue output despite market volatility, Cointelegraph noted.
“The difference is that Bitcoin mines (mining facilities) can come in so fast and may be gone so fast depending on the price of Bitcoin.”
Texas officials believe miners can participate in demand response systems, which include turning off their electricity during periods of high demand, given the unique positioning of the cryptocurrency mining business. Energy-intensive sectors like petrochemical plants frequently use this method.
In addition, the study hypothesised that increasing mining operations may encourage the construction of more energy infrastructure, particularly in isolated parts of West Texas.
Mining revenue hit record lows in June 2022 as a result of a protracted bad market. Blockchain.com data, however, revealed that BTC mining revenue increased by about 69% in a single month, from $13.928 million on July 13 to $23.488 million on August 12. Additionally, as Bitcoin miners work to extract the final 2 million BTC, decreased prices for mining equipment (GPU) have made it possible for them to improve and grow their mining rigs, Cointelegraph noted.
(With insights from Cointelegraph)
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