Cryptocurrency is a multi-billion dollar industry, and Texas refuses to be left out.
Marcus Adams, the state banking department’s assistant general counsel, told Dallas Morning News, "Texas is seeing the rise in the virtual currency industry and trying to get out ahead of it and ensure our regulated banks are prepared to remain competitive."
Bitcoin entrepreneurs are rushing to rural Texas.
In the middle of rural Texas, in Dickens County, a 320-acre cryptocurrency mining facility is currently under construction. The mining facility will operate 365 days a year to solve complex algorithms. If successful, the reward for each bitcoin will be above $ 57,000.
Kevin Brendle, Dickens County’s top elected official, loves the idea of building mining facilities in Dickens County. He says, "The land in Dickens County is wide-open. It’s cattle country with a little farming. We don’t have a lot of economic development." Brendle hopes that mining cryptocurrencies stimulates the economy, creates more jobs, and helps the county capture more taxes.
Cheap energy and almost no regulations
Governor Greg Abbott believes that Texas is a well-positioned state that will outperform economically, regardless of future challenges. It will always shine as a beacon of hope and opportunity, and now the state offers crypto miners a great option.
"Texas’ ranking as the world’s ninth-largest economy is because of the hardworking men and women of the Lone Star State, our commitment to economic freedom, our state-of-the-art infrastructure, and business climate. As we cultivate an environment of growth and opportunity, Texas will continue to build an even brighter future for all Texans."
Can Texas provide miners with adequate power?
However, Texas has a lot of challenges regarding its vulnerable power grid. Bloomberg examined the other side of attracting crypto miners to Texas, "The influx will require massive amounts of power, estimated to be twice the electricity consumed by Austin last year."
Last winter, power outages led to more than 200 deaths, and experts predict that this winter will be just as harsh.
Naureen S. Malik, an energy reporter at Bloomberg, says, "Texas experienced an unfathomable crisis in 2020 when extreme cold left millions of people in the dark after cascading power and natural gas failures. As those vulnerabilities are still being addressed, crypto miners are expected to add several gigawatts of demand in 2 years." It seems that the demand for power will increase the more people move to Texas.
These studies drove critics to raise concerns about Texas’s power grid’s increased demand, but not Governor Abbott's concerns. Regardless of what critics think, Cryptocurrency continues to get a warm welcome from Gov. Abbott. Last summer, he announced on his Twitter account that he signed a law for Texas to create a master plan for expanding the blockchain industry in Texas. Abbott wants to make Texas a magnet for crypto investors.
He added, "Blockchain is a booming industry that Texas needs to be involved in. I just signed a law for Texas to create a master plan for expanding the blockchain industry in Texas."
What do we know so far?
- We know that Texas lawmakers will continue to attract investors to Texas by using the newly amended "Texas Uniform Commercial Code to better adapt commercial law to blockchain and digital assets, formally define virtual currencies, and offers individuals and businesses a legal environment for crypto investment."
- We also know that Texas needs extensive and rapid innovation in using sustainable and renewable sources, so investors can leverage them for mining.
A group called the Bitcoin Mining Council claims 56 percent of the total power used by bitcoin miners originates from sustainable or renewable sources, but since no one regulates bitcoin mining, these numbers couldn't be confirmed.
Do you think Texas should provide crypto miners with incentives to relocate to Texas?