This year has seen a surge in the number of Bitcoin miners in the US. Consequently, there has been an influx of mining rigs in the country.
Texas And Washington Are The Two Best States
However, not all states are conducive to Bitcoin mining. New global energy institute data reveal that electricity costs are lowest in Texas and Washington. This data is correct, given that both states have become hotbeds for crypto miners lately.
Even though power isn’t the only factor crypto miners consider before relocating to a particular location, it is essential. However, those in a low-margin sector will need to relocate to a place with the lowest electricity costs since that is a factor that has the most significant effect on their profits.
Varying Electricity Costs In The US
This new data revealed that the average cost of energy in some states is 18.5 cents/kWh. However, it is less than 9 cents/Kwh amount in some other states. But the firm warned that “some states are implementing energy-limiting policies to increase its cost intentionally. Thus, individuals and merchants are left with no choice but to pay high prices to purchase energy.”
In the end, most Bitcoin miners only factor energy costs when making their relocation plans. That’s why miners are increasingly attracted to America since they can find very cheap energy sources in most states, and most of these sources are renewable. Marathon digital holdings CEO, Fred Thiel, opined that “our continent is fast becoming the favorite destination for Bitcoin miners. That’s where they can find renewable energy or even earn energy credits which they can use to offset their gas expenses.”
Adam Back (Blockstream’s chief executive) also said, “mining requires the cheapest power, and if it’s renewable, that’s an excellent addition since there are other processes and costs associated with fossil fuel burning.” Two years ago, 25% of Texas power was generated through the wind – that percentage must have increased now, while Washington is known for generating energy from hydroelectricity. But it’s important to note that a suitable framework and policy in any state are as important as electricity costs.
For example, Texans can select their power suppliers, but more importantly, the authorities are pro-crypto. The combination of these two factors is any miner’s dream. Famous crypto mining engineer, Brandon Arvanaghi, claimed that “the months ahead will be crucial to the crypto industry in the US mainly. Greg Abbott (a Texan governor) is now a crypto advocate, and his influence will be massive for the industry.”
America Miners Invested In The Crypto Mining Framework Before Its Popularity Soared
Four years ago, the leading cryptocurrency’s price crashed heavily, and most top Bitcoin miners showed little interest in it. But American miners use that as an opportunity to develop a mining infrastructure in the country without incurring a considerable cost.
Foundry CEO, Mike Colyer, revealed that “leading mining operators quickly raised funds and bought lots of mining rigs during that period.” Coyler’s Foundry is responsible for facilitating more than $290m worth of mining rigs in North America.