Given the crypto mining market’s unique position, Texas officials believe miners can participate in demand-response programs, which involve shutting down miners during peak demand.
The United States filled a major Bitcoin (BTC) mining gap left open by China by the end of June 2021. believe today that mining can indeed form a symbiotic relationship with the energy industry.
The Texas Comptroller’s Office newsletter published the state’s position on cryptocurrencies with the intention of long-term hosting of miners and operators. The financial note clears up a common misconception about Bitcoin’s power consumption, emphasizing that unlike “manufacturing plants or chemical industrial plants that can be expected to last for decades,” cryptocurrency mining facilities do not have major power requirements put on the net.
As major crypto miners move to Texas, concerns about power demand remain as a sudden spike threatens to upset the balance between supply and demand. While other energy-intensive industries often continue to produce in the face of market fluctuations, one of the concerns raised in a newsletter by Texas researcher Joshua Rhodes was:
“The difference is that bitcoin mines (mining power) can appear just as fast and disappear just as fast depending on the bitcoin price.”
Given the unique position of the cryptocurrency mining market, Texas officials believe miners can participate in demand-response programs, which involve shutting down miners during peak demand. This process is widely used in energy-intensive industries such as petrochemical plants.
Additionally, the study suggested that increased mining could power additional energy infrastructure, particularly in remote areas of West Texas.
Related: Bitcoin Mining Will Cost Less Than 0.5% Global Energy When BTC Hits $2M: Arcane
A sustained bear market pushed mining revenues to an all-time low in June 2022. However, data from blockchain.com showed that BTC mining revenues increased nearly 69% in a month, from $13.928 million on July 13 to $23.488 million on August 12.
Additionally, lower mining hardware (GPU) prices have now allowed BTC miners to upgrade and expand their mining rigs while mining the last 2 million BTC.