(Kitco News) – The state of Texas is one of the fastest-growing cryptocurrency mining hubs in the U.S., and it looks as though that will trend will continue for the foreseeable future based on statements released by the Texas Comptroller’s office.
According to a recent newsletter published by the office of the Comptroller, the state intends to continue with its pro-crypto stance with a focus on hosting long-term miners and operators.
In response to concerns about power-related issues in the state, the newsletter highlighted that unlike “manufacturing facilities or industrial chemical plants, which can be expected to be around for decades,” cryptocurrency mining facilities do not place big electrical demands on the grid.
Texas has been in the headlines over the past year for issues related to power generation and consumption, and the prospect of adding additional crypto mining operations to the grid has some concerned that it could overtax the system.
Officials in the state have responded to these concerns by saying that mining operations will be mandated to participate in demand response programs – which require mines to turn off machines during times of peak energy demand. This is a common practice in other energy-intensive industries such as petrochemical plants.
On the positive side, officials believe that an increase in mining operations could lead to a buildout of the energy infrastructure in the state, especially in remote areas of West Texas.
Texas Senator Ted Cruz is pro-crypto mining
During a recent interview with Vice News, Texas Senator Ted Cruz suggested that mining crypto assets is actually a “big net plus” for the environment as it incentivizes renewable energy generation while also capturing and utilizing energy that would otherwise be wasted.
“I think cryptocurrency is a net plus for the environment. In fact, a big net plus for the environment,” the Senator said. “Being able to unlock a lot of renewables is really important for the environment. I think being able to take stranded natural gas and put it to productive use is a big positive for the environment.”
Cruz also suggested that Bitcoin mining can help in the regulation and optimization of power distribution in the state, noting that the industry can quickly respond to spikes in energy demand.
“Because of the ability of Bitcoin mining to turn on or off instantaneously, if you have a moment where there’s a power shortage and a power crisis, whether it is a freeze or some other natural disaster where power generation capacity goes down, that creates the capacity to instantaneously shift that energy to put it back on the grid.”
According to Cruz, Texas is an ideal location for the advancement of Bitcoin mining, suggesting that rather than causing an increased strain on energy demand, it could instead play “a significant role in strengthening and hardening the resilience of the grid.”
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