Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.
Unregulated trading, plus wind and solar energy are in abundance in Texas. All this makes this location quite attractive for Bitcoin miners.
No other country in the world can outrank China when it comes to a favorite hub for Bitcoin miners. As per statistics, the Asian nation is home to over half of the world’s miners. That was the case before, but presently, Beijing doesn’t want to hear anything about Bitcoin miners and their trade.
In May, this year, the Chinese government initiated a severe crackdown on Bitcoin and any BTC mining-related activities. This set off “the great mining exodus” a term that’s now popular in the cryptocurrency space. The mass migration is currently underway and it’s expected to be a big plus for Texas.
Typically, Bitcoin mining is an energy-intensive activity whose end result is the creation of new Bitcoins and the maintenance of past transactions related to digital coins, particularly Bitcoin.
Last winter, Texas experienced one of the deadliest storms that resulted in a day-long blackout, leaving residents in the dark for most part of the day. Despite the fact that the state responded quickly, questions surrounding the state’s preparedness couldn’t be avoided.
Despite the blackout, Texas is popular for its low energy charges, also, the use of renewable energy has greatly grown in Texas, with wind generating 20% of its power in 2019. Texas power grid is deregulated, which means that customers can choose a favorite power provider.
Besides the energy and power issues, which are pertinent to Bitcoin mining, Texas authorities or leaders are known to be pro-crypto, and any miner worth their salt would readily confess that such places are hard to find on earth. Coupled with the cheap source of energy anyone can see why Bitcoin miners have suddenly decided to migrate to Texas.
Brandon Arvanaghi, who previously worked as a security engineer at the Gemini exchange, was quoted saying that dramatic and massive shifts will be witnessed over the next couple of months. He further praised Texas governor, Greg Abbott, for promoting Bitcoin mining in his state. Brandon also added that in the US, the industry is set to becoming real, and it will be fantastic and incredible.
How China Dominated Bitcoin Mining
Statistics on the world’s mining power isn’t yet available, however, past data indicate that up to 75% of the globe’s Bitcoin mining was done in China, and the specific provinces that mining activities were undertaken include Sichuan, Xinjiang, Yunnan, and Mongolia (inner). Yunnan and Sichuan have access to meccas hydropower which has been a source of renewable energy for Bitcoin miners while the other two provinces, Mongolia and Xinjiang host China’s coal industries.