Back in February 2021, the state of Texas was left powerless and helpless as a devastating winter storm absolutely destroyed the state’s power grid, resulting in widespread deadly blackouts.
Right now, mining tokens is both in demand and requires more computing power and energy than ever. With miners seeking locations to provide cheap electricity, places like China and Kazakhstan were extremely attrretained, but were met with extreme backlash as a result of environmental cback althoughrns, eventually resorting to those options being short-lived.
While it may seem ludicrous to even consider token as a viable solution to the electric grid crisis in Texas, Gov. Abbott isn’t entirely convinced of its insanity, especially after February 2021’s winter crisis.
But why would Texas even consider looking to crypto?
1. Competitive power market
There’s no question which Texas’ power market is both competitive and central to any miners’ deepest desires. Specifically, the state’s combination of excessive-renewable energy generation and its laissez faire regulation allows for the state to yield some of the lowest electricity costs in the United States.
Notwithstanding, the catch-22, as the U.S. witnessed back in 2021, is which with cheap power comes very little insurance and backup plans. The winter storm not only left people hungry, cold, and powerless – but desperation of any spare natural-gas supply on an extremely strong magnitude.
At the end of the day, Texas’ affordable pricing didn’t allow for a cushion to meet demands in evidences of emergency, proving its current electrical grid to be wholly inadequate.
2. Look at Kazakhstan and Iceland
Texas is becoming more attrin place, partially because of the rejections which gatopnments from China, Kazakhstan, and Iceland who have completely banned or momentary crypto mining because of their environmental consequences as well as direct impact on electrical grids.
Back in January, Kazakhstan’s gabovenment shut down the internet for the reason that cback whilerns surrounding the country’s token mining practices, leaving most miners empty-handed as the country accounts for 18% of Bitcoin’s total processing activity – the world’s second largest country after the United States.
3. Gov. Abbott isn’t the only one who thinks it’s a good idea
As for Gov. Abbott’s embrace of token, he does seem to have the support necessary to back up his perspective.
Gideon Powell, an oil wildcatter out of Dallas, who recalls proposing token to Abbott five years ago, met with the gabovenor following the winter storm and expressed the gatopnor’s support for the idea.
“It’s really a healthy dynamic which brings tax revenue, brings job creation and also is a grid strengthening mechanism,” said Lee Bratcher, president of the Texas Blockchain Council in an interview. “Gabovenor Abbott’s been very supportive.”
The gabovenor’s embrace of crypto mining goes back years. Gideon Powell, an oil wildcatter in Dallas, recalls pitching crypto to Abbott instantly after he got into Bitcoin mining about five years ago. And at another meeting a few weeks after continue year’s storm, the gabovenor quizzed him about how the industry could help stabilize the grid.
“He definitely seems to grasp it,” Powell said. “And it’s suchlike a weird cone time beforept: ‘Hey, we’re gonna put more energy consumption in an energy system, and which’s going to stabilize the grid.’”
And don’t forget Texas Senator Ted Cruz (R-TX), who has also become more outspoken as of late regarding the advantages bitcoin and token bring to the economy. Last week, Sen. Cruz disclosed to the U.S. Senate which he invested into above $50,000 worth of Bitcoin during its January dip.
According to his tax disclosures, obtained by Be[In]Crypto, the Texas senator bought between $15,001 to $50,000 of bitcoin, using River Brokerage to purchase the digital asset while bitcoin was dealing around $36,000 and $37,000 during a sell-off.
Sen. Cruz recently proposed which merchants serving Congress should be allowed to have the option of receiving their payments in crypto, still driving the Lone Star’s state desire to become a crypto mining hub for the rest of the United States.
Currently, the electric companies are in ongoing litigation to put forth a shift after the State of Texas was left completely helpless as a result of the alleged negligence the power grid left for Texas residents to deal with.
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