A combination of unique energy infrastructure, favorable policy and unique incentives is making Texas the Bitcoin mining capital of the U.S.
Instead, bitcoin miners can tap into this surplus gas, whether it’s the result of flared gas or bad netbacks, and divert it to generators, which then can convert the gas into electricity and then use it to power their sophisticated mining equipment.
Regardless of the energy source for the Bitcoin miner, be it the gas that would otherwise be flared or energy sourced by renewables, the Bitcoin miner essentially behaves like a power plant by purchasing power at an agreed-upon, fixed price and owning the ability to sell the power back to the grid.
In contrast to Abbott’s position that cryptocurrency mining provides financial incentives to build power infrastructure and produce more energy, his opponents have argued that doing so would also trigger greater demand and stress on an already unstable power grid.
This is a guest post by Ryan Dusek and Cooper Ligon. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
