The Rise of Texas in Bitcoin Mining
When it comes to Bitcoin mining, Texas has ample reasons to be puffing out its chest. With a whopping 28.5% of the U.S. Bitcoin hash rate, the Lone Star State has become the heavyweight champion in the crypto ring. In the latest Hashrate Map by Foundry USA, it stands markedly above others—Georgia rings in at 9.64%, New York trails slightly at 8.75%, and New Hampshire isn’t too far behind at 5.33%.
From Drastic Drops to Dominance
Let’s cast our minds back to December 2021: Texas only had 8.43% of the nation’s hash rate, while Georgia was riding high at 34.17%. Fast forward to 2023, and we see a shift in the winds. The overall U.S. Bitcoin mining landscape is expanding, as evidenced by the global Bitcoin hash rate reaching a staggering 400 exahashes per second (EH/s), nearly double what it was at the end of 2021.
The Great Balance: Power Curtailment Insights
The data captured for these statistics was gathered during a time when Texas faced power curtailment, meaning the actual hash rate might be even higher than reported. During these curtailments, miners must lower their production to keep the grid balanced—talk about playing nice in a crowded room!
Companies like Riot Platforms have adapted by participating in Texas’s energy programs. While August saw a reduction in Bitcoin mined compared to July, the company happily pocketed over $31 million in power credits from the state.
How Texas Became the Crypto Mining Capital
So, why the sudden love for Texas among Bitcoin miners? It boils down to three key factors: cheap energy, a regulatory framework that’s more friendly than a Texas smile, and with the exit of miners from China back in 2021, Texas grabbed the opportunity with open arms.
Electricity Prices: A Sweet Deal for Miners
According to the Energy Information Administration, Texas shines with electricity prices that are consistently lower than the national average. As of January 2023, the average residential tariff was $0.14 per kilowatt-hour (kWh)—that’s about an 8.3% discount compared to the national average of $0.15.
- Residential Electricity Tariff: $0.14 per kWh
- National Average: $0.15 per kWh
- Impact on large consumers: Even Lower Costs!
A Look Ahead: What’s Next for Texas Mining?
As the Bitcoin mining environment continues to evolve, it’s interesting to speculate what the future holds for Texas. With its ever-growing hash rate, energy incentives, and increasing popularity as a crypto mining playground, Texas might just be getting started. It’s the state where everything is bigger—and that definitely applies to Bitcoin mining!
