Texas officials believe miners can participate in demand response programs, which involve turning off their electricity during periods of high demand, given the unique positioning of the cryptocurrency mining market.
By the end of June 2021, the vast void that China had left in Bitcoin (BTC) mining had been filled by the United States. Officials in Texas, one of the U.S.’s fastest-growing crypto mining hubs, now think that mining operations can actually forge a symbiotic relationship with the energy sector despite looming rumors of high power consumption.
The Texas Comptroller’s office revealed its pro-crypto stance in a newsletter, with the aim of welcoming long-term miners and operators. The fiscal note emphasized that, in contrast to “manufacturing facilities or industrial chemical plants, which can be expected to be around for decades,” cryptocurrency mining facilities do not place significant electrical demands on the grid, dispelling the common misconception about Bitcoin’s energy consumption.
Concerns about power demand remain as more cryptocurrency miners move to Texas, as the sudden increase risks upsetting the equilibrium between supply and demand. One of the issues raised in the newsletter by Texas-based research associate Joshua Rhodes was that other power-hungry industries frequently continue production despite market fluctuations.
“The difference is that Bitcoin mines (mining facilities) can come in so fast and may be gone so fast depending on the price of Bitcoin.”
Texas officials believe miners can participate in demand response programs, which involve turning off their electricity during periods of high demand, given the unique positioning of the cryptocurrency mining market. Energy-intensive industries like petrochemical plants frequently use this method.
Additionally, the study hypothesized that increased mining operations might encourage the construction of additional energy infrastructure, particularly in isolated parts of West Texas.
Mining revenue hit record lows in June 2022 as a result of a protracted bear market. Blockchain.com data, however, revealed that BTC mining revenue increased by almost 69% in a single month, from $13.928 million on July 13 to $23.488 million on August 12.
Additionally, as Bitcoin miners work to extract the final 2 million BTC, lower prices for mining equipment (GPU) have made it possible for them to upgrade and expand their mining rigs.