Texas Residents Suffer as Bitcoin Mining Drains Resources

  • Texas Declared Open For Bitcoin Mining: Two years ago, Texas declared itself open for bitcoin mining. This was because China declared the practice of crypto mining illegal within its borders.
  • ERCOT Report: A new report from the Electric Reliability Council of Texas (ERCOT) states that 33,000 megawatts of power will be requested from prospective crypto mining businesses.
  • High Energy Consumption: Each bitcoin transaction uses nearly 1,452 kilowatt-hours (kWh) of electricity, equal to the power consumption of an average U.S. household for 50 days.

Background Information on Bitcoin Mining in Texas

Two years ago, Texas declared itself open for bitcoin mining after China declared the practice illegal within its borders. By doing this, those taking part in crypto mining had to find a new place to set up shop and the Lone Star State seemed like a good area given it had vast open land and cheap electricity.

ERCOT Report on Potential Issues with Bitcoin Mining in Texas

A new report by the Electric Reliability Council of Texas (ERCOT) states that 33,000 more megawatts in the ERCOT interconnection queue will be requested over the next few years from prospective crypto mining businesses. Furthermore, each bitcoin transaction uses nearly 1,452 kilowatt-hours (kWh) of electricity which is equal to the power consumption of an average U.S. household for 50 days. Additionally, some companies are able to make money by turning off their systems during times when energy prices spike as they rarely have to shut down and are still paid even if they do turn them off for only a few hours at a time.

Potential Negative Effects On Citizens Of Texas

Ed Hirs – a University of Houston energy economist – believes that these excessive electricity practices seen in the mining industry could cause negative effects on everyday citizens as they would have to pay more for their power or potentially lose it altogether in order for these companies to maximize profit margins.

ERCOT’s Position On Crypto Mining Companies In Texas

While ERCOT does not want to discriminate against companies looking to offer specific services or set up shop in Texas, it has also made it clear that it wants to serve any business that wants to do business in Texas including crypto miners so long as they do not cause too much disruption with their activities such as overloading energy grids or driving up power costs too high across all citizens within the state.

Conclusion

In conclusion , while there are certainly potential benefits associated with having large scale cryptocurrency operations setting up shop within one’s own state such as increased economic activity and job growth , there are also potential risks associated with them such as high energy consumption and strain on existing resources . Therefore , before allowing any large scale cryptocurrency operations into one’s state , local governments should look into what kind of impact such operations may have on citizens .

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