China kicking bitcoin miners out – and where do you think they’re going?

China has long been home to more than half the world’s bitcoin miners, but now, Beijing wants them out ASAP.

In May, the government called for a severe crackdown on bitcoin mining and trading, setting off what’s being dubbed in crypto circles as “the great mining migration.” This exodus is underway now, and it could be a game changer for Texas.

Despite a lack of reserves that caused dayslong blackouts last winter, Texas often has some of the world’s lowest energy prices, and its share of renewables is growing over time, with 20% of its power coming from wind as of 2019. It has a deregulated power grid that lets customers choose between power providers, and crucially, its political leaders are very pro-crypto – dream conditions for a miner looking for a kind welcome and cheap energy sources.

And a significant lack of anything approaching ethical and economic standards.

5 thoughts on “China kicking bitcoin miners out – and where do you think they’re going?

  1. Gimme a break says:

    “Here we go again: Texas, climate change and the power grid” https://thehill.com/opinion/energy-environment/559411-here-we-go-again-texas-climate-change-and-the-power-grid
    “This past February, snow, ice and record cold temperatures from Winter Storm Uri caused energy supply to plummet, triggering a cascade of failures that left more than 10 million Texans in the dark before presenting them with tens of billions of dollars in electricity and gas charges systemwide. In all, nearly 30 gigawatts of gas, coal and nuclear were offline during the crisis.
    Last week the challenge was extreme heat rather than cold, but the outcome feels eerily similar: More than 10 gigawatts of mainly fossil-fuel thermal plants were already off-line with forced outages. Consumers are being asked to conserve and, once again, the Texas grid is on the edge of blackouts.”
    “What Is Wrong With the Texas Grid?
    Our electric system can’t deliver the power we need when we need it most. But political leaders don’t seem all that interested in fixing the problem.” https://www.texasmonthly.com/news-politics/what-is-wrong-with-the-texas-grid/

  2. Gweilo Joe says:

    How Bitcoin Mines Were Airlifted From China to the US : After China banned Bitcoin, an exodus of mining computers made their way all over the globe. https://www.vice.com/en/article/7kb3aa/how-bitcoin-mines-were-airlifted-from-china-to-the-us
    China once dominated the Bitcoin mining market, the computing process by which new Bitcoin enters circulation. The country once accounted for more than 80 percent of the world’s Bitcoin mining.
    Senator Ted Cruz (R-TX), himself a Bitcoin investor, has pledged Texas will “become the center of the universe for Bitcoin and crypto.”

  3. Assets says:

    “Crypto Mines Are Making Life a ‘Daily Hell’ for This Tiny North Carolina Town” https://www.thedailybeast.com/a-crypto-mine-is-making-life-a-daily-hell-for-a-small-town-in-north-carolina
    “How Crypto Is Failing Spectacularly to Greenwash Itself : Supporters say Bitcoin and other digital currencies can help solve climate change. But in reality, crypto has morphed into yet another money-making scheme.” https://www.thedailybeast.com/how-cryptocurrencies-are-failing-spectacularly-to-greenwash-themselves
    Warren Buffett: ‘If you offered me all the world’s Bitcoin for $25, I wouldn’t take it’ (May 02, 2022) https://seekingalpha.com/news/3829830-buffett-if-you-offered-me-all-the-worlds-bitcoin-for-25-i-wouldnt-take-it

  4. Yee-haw says:

    Texas Gets So Hot That Crypto Miners Call It Quits https://futurism.com/the-byte/texas-crypto-miner-quit-hot
    Bitcoin miners have flocked to Texas over the past year after China banned the practice, and the US subsequently became the biggest hub for mining globally. Those crypto miners are expected to inflate electricity demand in Texas by up to 6 gigawatts by the middle of next year, according to Bloomberg. See https://www.bloomberg.com/news/articles/2022-07-11/bitcoin-miners-shut-off-rigs-as-texas-power-grid-nears-brink#xj4y7vzkg
    The miners are already struggling to repay debt and raise additional capital with Bitcoin prices in sharp decline. Shares of public miners have tumbled about 75% this year.

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