- Texas energy load projected to increase fivefold in two years
- Incentives are being given in Texas for crypto mining
- There is also the risk of pollution from crypto mining
Texas energy load projected to increase fivefold in two years
Bitcoin mining is booming in the second largest state of America, Texas. Due to this, the demand for electricity in Texas is continuously increasing. Electric Reliability Council of Texas (ERCOT), the state’s grid operator, expects the energy load to increase fivefold in two years. ERCOT has said that it will have to increase the electricity generation by 5,000 MW due to the consumption of crypto mining and data centers. The crypto industry in Texas is already consuming up to 1,000 MW of electricity.
In Texas, crypto miners are being offered incentives such as tax exemptions and sales tax credits for up to 10 years. Due to this the number of miners is increasing
Incentives are being given in Texas for crypto mining
Texas has emerged as a hub for bitcoin mining after China banned all crypto-related activities. A major reason for banning crypto mining in China was the high consumption of electricity in it. In Texas, crypto miners are being offered incentives such as tax exemptions and sales tax credits for up to 10 years.
Two of the world’s largest crypto mines are being built in Texas. However, residents of Texas are not happy with this. He says that there is a shortage of electricity in Texas and the reason for this is bitcoin mining. In February this year, the Texas Electricity Board faced stiff opposition over a lack of electricity supply.
People were suffering a lot during the winter season due to a lack of electricity supply. Many industries also had to be closed due to this reason. However, ERCOT had then said that the supply of electricity has been interrupted due to inclement weather.
There is also the risk of pollution from crypto mining
Texas residents are concerned about the further load on the already heavy load on the power grid system. A research report states that cryptocurrency mining hardware is continuously working and this has increased energy consumption.
There is also the risk of pollution from crypto mining. Between January 2016 and June 2018, the mining activities of the four major cryptocurrencies are estimated to have generated about 13 million tonnes of carbon dioxide emissions.
Efforts have begun in recent months to use green energy resources to reduce the pollution caused by the mining of crypto.
For example, El Salvador, the first country in the world to legalize bitcoin, plans to use geothermal energy from volcanoes for bitcoin mining.