Pete Sessions, a member of the U.S. House of Representatives from Texas, believes that bitcoin mining can play a “key role” in ensuring the country’s energy independence.
He was supported by a well-known supporter of the first cryptocurrency, Senator Cynthia Lummis.
— Cynthia Lummis 🦬 (@CynthiaMLummis) March 21, 2022
The congressman did not specify how digital gold mining would contribute to the achievement of the stated goal. However, he is not the only state politician who has spoken out in support of the industry.
Senator Ted Cruz and Governor Greg Abbott notedthat mining brings in new jobs, taxes, and can also help stabilize the state’s largely deregulated power grid.
In August 2021, the US took the lead in the share of bitcoin hashrate after the ban on the industry in China. As of October, Texas ranked fourth among the states in terms of computing power in the network of the first cryptocurrency with a figure of 14%.
Castle Island Ventures partner Nick Carter explained why the region attracts miners.
“Texas is so “habitable zone” for bitcoin mining, which is simply unrealistic,” he said.
Texas is such a goldilocks zone for bitcoin mining it’s unreal.
— Supportive policy makers
— Energy DNA
— Most deregulated market, cheap power
– Islanded grid, has to buy lots of ancillaries
— Most renewable grid, most negative pricing events
— dark nic (@nic__carter) March 19, 2022
In his opinion, this is facilitated by:
- political support;
- the state’s energy-producing traditions;
- deregulated market and cheap energy;
- “island” power grid and the need for auxiliary systems;
- focus on renewable sources;
- excess power capacities;
- favorable attitude of regulators.
In an article for Mining Week presentations he explained how mining can contribute to US energy independence. Carter recalled that the bitcoin network consumes about 15 GW. In the next year or two, the country’s miners are ready to add another 20-30 GW.
This means not only potential investments in generation, but also the opportunity to increase the economic sustainability of solar and wind farms. Since mining is an “interruptible” process, the industry is able to balance the consumption of green energy, Carter noted.
Recall that in January, Iris Energy announced an increase in its mining capacity in Texas to 600 MW.
Compute North has raised $385 million to build data centers for cryptocurrency mining in the US, naming the state as one of the locations of the facilities.
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