Following the prohibition on mining in China, bitcoin mining has accelerated in Texas, where many miners have relocated their operations. Electrical demand is expected to rise by 3,000-5,000 megawatts (MW) by 2023, prompting the state to modernize its electricity supply.
Mining farms currently receive between 500 and 1000 MW of energy. The ERCOT organization will boost the additional capacity. According to preliminary calculations, this will allow for 20% of all Bitcoin mining operations around the world.
Texas, according to experts, has what it takes to succeed:
- First, there are programs for mining personnel to be trained.
- Second, tax exemptions on the selling of cryptocurrency that has been mined.
- Third, ten-year tax relief.
True, not everyone in Texas is a believer in the state. According to many users, the strain on the electrical infrastructure might be disastrous for Texas. They bring to mind the situation in February 2021, when the region’s power supply was severely disrupted owing to unusual frosts. For a few days, 5 million people were without power as a result of this.
Unfortunately, their suspicions are not unfounded. ERCOT staff checked the system and discovered that several of the issues had not been resolved. To reassure the people, the miners went about their work.
Many businesses collaborate with electricity providers to ensure the grid’s stability. Others use alternate energy sources to avoid relying on ERCOT’s efforts. This increases the long-term viability of Bitcoin mining.