2021 is a great year Bitcoin With the influx of new talent and equipment into the American market, mining in the United States, but certain states are certainly more attractive than others.
The latest data from the Global Energy Institute show that states such as Texas and Washington have the lowest average electricity prices, which of course coincides with the fact that these two states are becoming more and more popular destinations for new digital coins.
Although the cost of electricity is not everything when deciding where to open a store, it certainly has a long way to go.
Large-scale miners compete in low-profit industries, and their only variable cost is usually energy, so they are incentivized to migrate to the cheapest energy in the world.
Electricity prices vary across the United States.
In California and Connecticut, you will pay 18 to 19 cents per kilowatt hour, while in Texas, Wyoming, Washington, and Kentucky, you will pay less than half. The Global Energy Institute used the latest annual data provided by the U.S. Energy Information Administration to draw a map of the country’s annual electricity prices.
The institute did warnHowever, “although the energy mix available in a state will play an important role in state electricity prices, some states’ energy restriction policies have artificially increased prices, making electricity prices much higher for consumers and businesses.”
Ultimately, Bitcoin miners are most concerned about finding cheap sources of electricity.
This is part of the reason why the United States is particularly attractive to potential miners, because the country has some of the cheapest energy sources on earth, many of which are often renewable.
Fred Thiel, CEO of Marathon Digital Holdings, a cryptocurrency mining expert, predicts that most new miners moving to North America will be powered by renewable energy or natural gas offset by renewable energy credits.
“Mining is price-sensitive, so look for the lowest-cost electricity, and the lowest-cost electricity is often renewable, because if you burn fossil fuels… it has mining, refining, and transportation costs,” said Adam, CEO of Blockstream. Said.
Washington State is a mecca for hydroelectric mines, and Texas’ share of renewable energy has grown over time. 20% of electricity comes from wind energy As of 2019.
However, electricity bills are not everything. Friendly decision makers and adequate infrastructure are also key factors.
Take Texas as an example.
It has a deregulated power grid that allows customers to choose between electricity suppliers, and, crucially, its political leaders are supportive of cryptocurrencies-it’s miners looking for a popular and cheap energy source. Dream condition.
“In the next few months, you will see a huge shift,” said Brandon Arvanaghi, a Bitcoin mining engineer. “We have governors like Greg Abbott of Texas driving the mining industry. This will become a real industry in the United States, and it will be incredible.”
The United States also spent several years investing in cryptocurrency infrastructure, long before it became popular.
When Bitcoin crashed at the end of 2017 and the wider market entered the multi-year cryptocurrency winter, there was not much demand for large Bitcoin farms. U.S. mining operators saw their opening and seized the opportunity to deploy cheap funds to establish a mining ecosystem in the United States.
“Large publicly traded miners can raise funds for large purchases,” said Mike Colyer, CEO of digital currency company Foundry, which helped bring more than $300 million in mining equipment to North America.
Colyer stated that companies like Core Scientific, a North American cryptocurrency mining operator, have been building custody spaces throughout the period so that they have the ability to plug in new equipment.Core, where Do business in North Dakota, North Carolina, Georgia and Kentucky, Is one of the largest blockchain infrastructure and hosting service providers in North America.