And how Texas is fast becoming a mining magnet.
Following the recent Chinese crackdown on BTC and Crypto mining, in which over half of the world’s mining took place, there has been a great migration to several other nations & regions quick to recognize the opportunity that lies in front of them. Canada, Kazakhstan & the USA. Forever shifting the power & dynamics away from China. Few places have moved as swiftly as the state of Texas to become a welcoming hub of mining activity. A state that produces 20% of it’s energy demands from renewables, as we see a move to cleaner Bitcoin mining energy sources. Gov Greg Abbott has been progressive in creating new bills & regulations for this huge economic shift. In Texas, miners can also secure very long term purchases of power agreements up front due to Texas having a de-regulated power grid, allowing secure prices for years at a time. A useful tool in a market where prices fluctuate on a regular basis. In a quiet part of Texas one such enormous bitcoin mine is already underway, 320 acres of designated land purely now for mining. Potentially bringing great economic benefits to what were small rural farming communities across Texas. Riot blockchain’s recent acquisition of Whinstone US, which just so happens to be the US’s largest mining facility, & is also located in Texas. Production is estimated to be at least 500 BTC p/m. At current prices, these are hefty returns.
Texas also boasts some of the lowest & most attractive energy prices anywhere in the world, not just the USA.
There is little doubt that Texas is leading by example, & is serious about becoming a major global hub for Cryptocurrency & mining.
Canada & Kazakhstan are also key relocation players
Data servers are already fully booked out to October in Kazakhstan, capacity is unable to cope with the new demand from relocating Chinese miners.
With relation to mining migration to Canada, predominately the Alberta region, this is expected to cause an increase in demand for fossil fuels in this area. With expectations of around 1 Million mining rigs being relocated, for sure it’s going to be an economic boost for countries like Canada, USA & Kazakhstan to name a few.
USA’s new “Crypto” tax
The single biggest threat to future growth of Cryptocurrencies & mining in the USA is the recent debacle of a proposed yet very confused “Crypto tax” in the USA that came in under the new infrastructure bill. More over, what constitutes a brokerage, & therefore what entities within the industry would face taxation.
If miners and software coders were indeed to face tax on every transaction, it would likely cripple any form of future growth in this sector within the United States. At that point, America’s loss will be someone else’s gain. A space to watch closely.
