A recent tweet by Documenting Bitcoin says that states are competing to become the best BTC mining place in the United States of America. This is big as crypto is becoming the next big industry where companies and states are going to compete to be the best.
States are now competing to become the most #Bitcoin mining-friendly place.
Because with mining, comes increased economic security, job security, and energy grid security.https://t.co/AfDP75QEmR
— Documenting Bitcoin 📄 (@DocumentingBTC) October 3, 2021
Why are the states competing for the best BTC mining place?
In the recent news, we came to know about China banning crypto mining in the country. On the other hand, Miami Mayor thinks it will be a remarkable turn of events to seize such an opportunity. Mayor Suarez even tried to convince different crypto mining firms that South Florida provides cleaner energy.
Crypto miners always compete in a low-margin industry, where their variable cost only depends on energy. They can be easily motivated to migrate to the world’s cheapest source of power for better mining. And according to Global Energy Institute, California and Connecticut charge only 18 to 19 cents per kilowatt per hour. And in Texas, Wyoming, Washington and Kentucky, it’s half.
2021 has been a great year for America when it comes to cryptocurrency. Bitcoin mining has become much easier with talented scholars and new equipment flooding the market daily. Although everything might sound fantastic, some states are much more ideal for mining than others.
What does Global Energy Institute have to say about this?
The above map shows how much electricity costs in the fifty different states of America. It clearly shows that states like Texas and Washington have the lowest average price of electricity. And the data makes those places pretty much ideal for bitcoin mining. However, the states are pretty hot for mining digital coins. So, it’s not always about the price of electricity; many factors come into play while choosing the best place for mining.
The institute also warns the energy mix available in the state will end up playing an essential role in the state’s electricity price later on. Energy-limiting policies will later elevate the prices, and it will be higher for individual consumers and businesses. But BTC miners mostly care about the cheapest source of electricity for mining. And they will gladly migrate in search of the cheapest place.
What are your thoughts that the States are competing against each other to provide the best place for BTC mining? Let us know in the comment section below the content. And if you like the content, don’t forget to share it with other crypto-enthusiasts out there.
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