Texas fears for its power grid due to Bitcoin (BTC) mining

Texas’ concern over Bitcoin (BTC) miners

Rather geographically stable for many years, the Bitcoin mining map has evolved considerably this year. The “fault” lies with China, which has decided to virtually ban all mining on its territory.

As a direct consequence, the exodus of minors has benefited other countries, primarily the United States. With Uncle Sam, it is the State of Texas that has notably been able to pull the juicy strings of this industry.

Many minors therefore came to settle in Texas in order to continue their activity. However, this news did not delight everyone. Some people working in the Texas energy industry are worried about the consequences for the southern state’s power grid as winter approaches.

πŸ‘‰ To read – China orders Bitcoin (BTC) miners in Yunnan to cease their activities

Texas, a very Bitcoin (BTC) friendly state

Why the rush to Texas? The reason is simple: minors have a double incentive to settle there. First of all, the energy there is abundant and inexpensive, even almost free. Then, some politicians are calling for part of the mining industry to settle in Texas.

It is in particular the Republican Senator Ted Cruz who strongly encouraged the miners to put their machines on Texan soil. Present at the last Texas Blockchain Summit, he praised his state and its energy resources.

However, voices are being raised today to say that this massive arrival of minors from China is not necessarily good news.

The reason is simple: Despite the promises of the Lightning Network, Bitcoin mining (BTC) continues to consume abundant energy to function. It is therefore necessary to provide that the Texan energy reserves are sufficient to avoid any risk of power outage.

πŸ‘‰ To go further – Texas energy resources, an opportunity for Bitcoin (BTC) according to Senator Ted Cruz

Texas fossil fuels a problem for Bitcoin mining (BTC)?

During the last Texas Blockchain Summit, Ted Cruz clarified that the energy produced was wasted because it was not used. BTC mining could therefore use this wasted energy.

On paper, this proposition is interesting. However, the source of energy thrown into nature is mainly natural gas, a fossil fuel. However, miners are now strongly encouraged to use renewable energies or nuclear energy, which does not emit greenhouse gases.

The β€œbad news for Texas” is therefore not only an increase in consumption, but also the use of fossil fuels.

Some people will correctly say that energy has already been produced and therefore is, in a way, produced for nothing. However, for the picture and looking at the long term, it is not certain that a massive exodus in Texas is a good thing for Bitcoin mining.

πŸ‘‰ To go further – How does Bitcoin (BTC) help develop green and renewable energy?

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About the author: Benjamin Allouch

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Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.

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