2021 was a great year for Bitcoin mining in the United States as new talent and equipment flooded the market, but some states are arguably more attractive destinations than others.
According to the latest data from the Global Energy Institute, states such as Texas and Washington have the lowest average prices for electricity, and both states are undoubtedly popular destinations for casting new digital coins. is not.
The cost of electricity isn’t everything when deciding where to set up a store, but it certainly helps a lot.
Large miners compete in low-margin industries. In this industry, variable costs are usually energy only, which motivates us to move to the cheapest power sources in the world.
Electricity prices across the United States vary.
California and Connecticut will pay 18-19 cents per kilowatt hour, while Texas, Wyoming, Washington, and Kentucky will pay less than half that amount. The Global Energy Institute publishes a national annual electricity rate map using the latest year-round data available from the US Energy Information Administration.
However, the institute said, “While the energy mix available in the state plays a major role in state electricity prices, some state energy restriction policies artificially raise prices and consumer electricity. It acts to make the price much higher and is a business. “
Ultimately, Bitcoin miners care most about finding cheap power sources.
This proves that the United States is particularly attractive to future miners, given that the United States is home to some of the cheapest energy sources on the planet, many of which tend to be renewable. Part of the reason.
Fred Thiel, CEO of Cryptocurrency Mining Specialist Marathon Digital Holdings, hopes that most new miners moving to North America will be powered by renewable energy, or gas offset by renewable energy credits.
“Because the mining industry is price sensitive, the lowest cost electricity tends to be renewable in order to find the lowest cost electricity, because if you are burning fossil fuels, there are costs of extraction, refining and transportation. That’s what Blockstream CEO Adam said. Buck said.
Washington is a mecca for hydropower mining farms, but Texas’ share of renewable energy is increasing over time, with 20% of its electricity coming from wind power in 2019.
Electricity is not everything. Friendly policy makers and adequate infrastructure are also important factors.
With a deregulated power grid, customers can choose from power providers. And decisively, its political leaders support cryptocurrencies. A dream condition for miners looking for a kind welcome and cheap energy sources.
“We will see dramatic changes in the coming months,” said Bitcoin mining engineer Brandon Alvanagi. “There is a governor who is driving a mining industry like Greg Abbott in Texas. It will be a real industry in the United States and will be incredible.”
The United States has also invested in crypto infrastructure for years long before it became widespread.
When Bitcoin crashed in late 2017 and the wider market entered the multi-year cryptocurrency winter, there was not much demand for large Bitcoin farms. Seeing their opening, US miners jumped at the opportunity to deploy cheap money to build the US mining ecosystem.
“Large listed miners were able to raise money to make large purchases,” said Foundry, a digital currency company that helped bring more than $ 300 million in mining equipment to North America. CEO Mike Colyer said.
According to Collier, companies like North American crypto mining operator Core Scientific continued to build hosting space throughout the period to allow new gear to be connected. With operations in North Dakota, North Carolina, Georgia, and Kentucky, Core is one of the largest blockchain infrastructure and hosting providers in North America.