Bitcoin Miners Return to Texas

Earlier this month in the US state of Texas, which is considered to be the mining hub of the largest cryptocurrency by market capitalization, the electricity supply was affected by increasing heat. For this reason, many bitcoin mining firms stopped their operations. Mining has resumed in Texas.

The Electricity Reliability Council of Texas (ERCOT) is responsible for operating the grid for more than 26 million customers. This accounts for about 90 percent of the total electricity consumption in the state. ERCOT has not commented on this. According to a Reuters report, electricity consumption may increase again as temperatures rise in Texas. Mining of cryptocurrencies uses computers that consume more electricity. Major bitcoin mining firms were forced to halt operations in Texas as temperatures rose and electricity demand hit record levels. “The miners are back. ERCOT has over 3,000 MW of surplus capacity on the grid,” said Lee Bratcher, president of the Texas Blockchain Council.

Texas has emerged as a bitcoin mining hub after the Chinese government imposed restrictions on all crypto-related activities last year. The main reason for banning crypto mining from China was the high consumption of electricity in it. Last year, Kazakhstan became the world’s second largest center for bitcoin mining after the US. The number of miners in Kazakhstan is increasing due to China’s ban on crypto mining last year. However, they have a large number of illegal miners. The government of Kazakhstan last month decided to increase the tax on electricity for crypto miners.

Authorities are taking action against illegal crypto mining centers due to the interruption in the supply of electricity to Kazakhstan. There is a shortage of electricity from these mining centers and this is also increasing the threat to economic security. The Financial Monitoring Agency of Kazakhstan has raided and closed several such crypto mining centers.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

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