How Bitcoin Mining is Improving Texas Economy, Securing Jobs for Texans
The fundamental promise of most political campaigns, no matter ideology, is to increase jobs.
Understandably, this is what is most pertinent to the ordinary citizen. Anything that promises to line the pockets of voters is potentially a winning strategy.
In the U.S., there is a pressing need for quality jobs. The combined effect of cheaper labor in developed countries and automation has whittled away millions of traditional manufacturing jobs.
Incidentally, the same automation is bringing some jobs back.
Texas Bitcoin Mining Boom
The North American Bitcoin mining scene is undergoing rapid expansion.
This spike is largely because Bitcoin is now exponentially more valuable than it was a few years ago. Yes, some would mine Bitcoin for ideological reasons. That said, the overwhelming would only do it because it makes economic sense.
Texas, on paper, looks like an unlikely destination for Bitcoin miners. It is generally warmer than most American states and seems a world away from the world of Bitcoin mining. This latest boom is getting to places like Texas.
Documenting Bitcoin posted a new massive Bitcoin mining operation in Texas on Twitter. The Lone Star state is famous for its energy richness. Houston is one of the most important energy cities in the U.S.
One thing about Bitcoin is that it is an electricity buyer of last resort. The only thing mining needs is constant and affordable electricity.
This demand can improve energy independence for multiple states and create jobs for the Texas economy.
Areas like Rockdale and Pyote Getting More Activity
Texas is a large state with various regions. Some are attracting considerably more activity than others.
An article by Yahoo News highlighted the new mining destinations in Texas. One of the largest crypto mining entities in the U.S., Whinstone Inc., has set up shop in Texas. The queue is long, with several other industrial-scale miners scouting destinations.
One of the most significant pull factors is the sudden mining exodus from China. The world’s dominant mining nation decided to pull the plug and restrict crypto mining in various regions. Additionally, the Central Bank has warned financial entities against handling cryptocurrencies. Needless to say, the writing is on the wall for Bitcoin miners and crypto enthusiasts in China.
For instance, BIT mining that formerly mined in Shenzhen was seriously affected by the bans in China. In May, they decided to shift operations. Accordingly, they have invested over $25 million into a new data center in Texas. BIT mining is only the tip of the iceberg but represents the windfall that American states will gain from the China bans.
The Rockdale area is suitable for various reasons. One of the more salient ones is that there are many crypto-friendly officials in that area. Rockdale mayor, John King, is actually a Bitcoin miner. That is something you cannot say for many officials. He has a small-scale operation at his home and understands this activity quite well.
The New Arrivals Are Part of an Ongoing Trend
Unlike many politicians who want to crack down on crypto, King has backed several pro-crypto policies. He is keen on meeting miners coming into the area. This zealous approach is sometimes decisive in attracting investors to any place.
Mayor King may also be doing it for personal reasons because his operation has yet to attain the level of profitably professional Bitcoin miners can boast of. Therefore, the arrival of miners could be symbiotic for existing ones like King.
This spike is undoubtedly a welcome development. That said, mining operations in Texas did not start yesterday. The state has a decentralized electricity grid. This system may have come under criticism during the recent massive winter storm but works just fine for Bitcoin miners. They can enter into contracts with specific energy companies and get customized rates.
Bitmain is arguably the best mining equipment manufacturer in the world. The company has actually had a significant operation in Texas for some time. Notably, Bitmain operates a colossal 33,000-acre Bitcoin mine in Rockdale. This facility has been in operation since 2019 and is one of the largest mining farms in the world. Such is the scale of investment that Bitcoin mining can bring to small towns.
Bitmain produces the famed Antminer s19 Bitcoin mining rigs. These are considered to be the best equipment around, and rightfully so. VBit Inc is proud of our direct line to Bitmain. It allows VBit to source state-of-the-art equipment that allows our miners to have a competitive operation.
Pyote is another upcoming hub. It had a population of less than 500 last year. Interest from Bitcoin miners could see this area take off. Companies like Layer 1 Technologies and Argo Blockchain invest in the area to utilize available land and energy.
The Next Energy Revolution Is Here
China used energy usage and carbon emissions as the pretext to eject miners. These claims may be valid because China has the ambition to become carbon-neutral by 2060. Without casting aspersions, it would be an incredible feat if the country achieves that.
At their peak, Chinese miners controlled over 80 percent of global cryptocurrency mining. These miners are scrambling for a new home, and states like Texas are at the right place at the right time.
After these developments, Bitcoin miners are getting creative. China came down hard because of carbon concerns. There is an increasing emphasis on mining using renewable energy. This way, miners can harness vast electricity sources worldwide without the baggage of climate concerns.
This boom is likely to spike an energy revolution. Bitcoin mining creates ready demand for renewable energy and is versatile enough to be carried out right next to these plants. Think of the amount of solar and wind energy that a sunny and coastal state like Texas can produce.
That’s right, a lot.
Renewable electricity entrepreneurs have often struggled with initial set-up costs and finding ready demand. Bitcoin miners often have ready capital. It is an activity that literally converts electricity into money.
This alliance could be very fruitful for both sectors. Bitcoin mining needs to be greener, while renewable energy needs more investments. Elon Musk made the need for this shift more urgent when he pulled the plug on Bitcoin payments to Tesla. He stated that this move was out of the need for lessening the carbon footprint of Bitcoin mining.
To this effect, he and Michael Saylor formed a Bitcoin mining council. This council took shape in June, ironically without Musk in the council. Still, if the effect will spur more renewable energy in mining, then it will be for the greater good.
VBit Is a Trailblazer in Renewable Electricity Mining
There are always late arrivals to the party.
VBit Mining is not one of them.
Since commencing operations in 2018, our focus on sustainable mining has always been a priority. We built data centers in the U.S. to harness cheap renewable electricity and natural cooling.
Such foresight allowed our operation to ease seamlessly into this era of green mining. We offer hosting facilities in our data centers and equipment reselling services for those looking to get started. It will be fascinating to see the growth of mining operations in North America.
Visit the VBit Mining Shop to learn more about Bitcoin mining!