November 24, 2021 7:33:44 pm
As Texas, US, becomes home to 20 percent of all Bitcoin mining operations in the globe, grid operator Electric Reliability Council of Texas (ERCOT) predicted a five-fold increment in electricity consumption in the state.
The Bitcoin mining industry in Texas currently consumes around 500 to 1,000 MW of power. ERCOT anticipates, as reported by Bloomberg, that that demand could increase as much as fivefold by 2023 and has planned an additional 3,000 to 5,000 MW.
It is worth noting that Texas has emerged as a Bitcoin mining hub after the Chinese government de-legalised all crypto-related activities including trading and mining, earlier this year.
Texas is the only US state which operates its own internal power grid. This is managed by the nonprofit ERCOT that provides at least 90 per cent of the state’s electricity.
Chinese authorities blame cryptocurrency miners for energy waste to deadly coal mining accidents, and a potential threat to the country’s efforts to reduce carbon emission.
Bitcoin or any cryptocurrency mining requires high-powered computers, that are competing to solve complex mathematical puzzles, in a process that makes intensive use of electricity.
In February 2021, temperatures plunged below freezing levels, over 4.3 million people across the US state have been left without power after high demand for electricity caused the power grid to repeatedly fail. ERCOT faced sharp criticism from state leadership, including Governor Greg Abbott, who said that the body “has been anything but reliable over the past 48 hours.”
Meanwhile, El Salvador, the first country to use crypto as a legal tender— is powering its Bitcoin mining facility using geothermal volcanic energy.
Further, crypto adoption in the US has reached its peak, with 23 percent of Americans investing in cryptocurrencies, according to a survey commissioned by Finder.
In addition, residents of US beach city Miami may soon get cryptocurrency MiamiCoin in their crypto wallets for free. Miami city mayor Francis Suarez announced on Twitter that the city will share some of the gains from the city’s cryptocurrency with all its citizens and will distribute payments through digital wallets.
Earlier this month, New York city’s new mayor-elect Eric Adams and Miami Mayor Suarez have announced to take their paycheques in Bitcoin.
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