Texas, the US, is home to 20 percent of all bitcoin mining operations in the world, with grid operator Electric Reliability Council of Texas (ERCOT) predicting a five-fold increase in electricity consumption in the state.
The bitcoin mining industry in Texas currently consumes approximately 500 to 1,000 megawatts of electricity. As reported by Bloomberg, ERCOT forecasts this demand to grow five-fold by 2023 and has plans for an additional 3,000 to 5,000 MW.
It is worth noting that earlier this year, Texas has emerged as a bitcoin mining hub after the Chinese government de-legalized all crypto-related activities, including trading and mining.
Texas is the only US state that operates its own internal power grid. It is managed by the non-profit ERCOT which provides at least 90 percent of the state’s electricity.
Chinese officials blame cryptocurrency miners for deadly coal mining accidents and energy waste for the potential threat to the country’s efforts to reduce carbon emissions.
Mining bitcoin or any cryptocurrency requires high-powered computers, which are competing to solve complex mathematical puzzles, in a process that uses electricity intensively.
In February 2021, temperatures dropped below freezing levels, leaving more than 4.3 million people without electricity across the US state as power grids repeatedly failed due to high demand for electricity. The ERCOT faced sharp criticism from the state’s leadership, including Governor Greg Abbott, who said the body “has been anything but credible over the past 48 hours.”
Meanwhile, El Salvador—the first country to use crypto as legal tender—is powering its bitcoin mining facility using geothermal volcanic energy.
Furthermore, according to a survey conducted by Finder, crypto adoption in the US has reached its peak, with 23 percent of Americans investing in cryptocurrencies.
Furthermore, residents of the US beach town of Miami may soon have the cryptocurrency MiamiCoin in their crypto wallets for free. Miami City Mayor Francis Suarez announced on Twitter that the city would share some of the profits from the city’s cryptocurrency with all its citizens and distribute payments via digital wallets.
Earlier this month, new New York City mayor-elect Eric Adams and Miami Mayor Suarez announced that they would take their salaries in bitcoin.