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it’s bitcoin mining running state of Texas on the ground?
Texas could end up on the wrong side
Texas declared itself open to bitcoin mining about two years ago. During that time, the nation of China said the practice would be outlawed, meaning those involved in crypto mining within its borders had to find a new place to settle, and the Lone Star State seemed like a good area. since it had vast open land and cheap electricity.
However, according to a new report from the Electric Reliability Council of Texas (ERCOT), things are beginning to move in a negative direction. The document says:
Prospective crypto mining companies have requested to put an estimated 33,000 more megawatts into the ERCOT interconnect queue over the next few years (enough to power the entire state of Florida)… A single bitcoin transaction used nearly 1,452 kilowatt-hours (kWh) ) of electricity, the same as the energy consumption of an average US household for almost 50 days.
A separate news outlet says:
Their enormous energy consumption combined with their ability to shut down almost instantly allows some companies to save money and make money by cleverly pulling the levers in the US energy markets. In practice, they are rarely asked to shut down. Several of the companies are being paid through these agreements. [most] of the time they operate. Most years, they are asked to put out only a few hours, at which point they are paid even more.
Not too long ago, it was reported that Texas paid a specific bitcoin mining company to shut down its systems during a time of severe winter storms. Overall, that company made millions of dollars doing nothing over the course of several weeks. ERCOT says it does not seek to discriminate against the types of businesses seeking to establish in Texas, nor does it have a problem with businesses seeking to offer specific types of services. He said:
We want to be able to serve any company that wants to do business in Texas, and that includes crypto miners.
Ed Hirs, an energy economist at the University of Houston, believes that many of the excessive electricity practices seen in the Texas mining industry will fall on the shoulders of ordinary citizens. He mentioned in an interview:
Ironically, when people pay more for their energy, or lose it altogether, miners make money selling energy to Texans at rates 100 times what they paid.
Ordinary citizens bearing the burden?
A study by the research firm Wood Mackenzie backs this up, stating:
Increased demand has caused energy customers’ electric bills to rise nearly five percent, or $1.8 billion per year. In West Texas, where several bitcoin mines have been established, bills have increased by almost 9 percent.