Texas Taking Strides Towards Becoming ‘Bitcoin Country’

Greg Abbott, the governor of the state of Texas, has been a believer in Bitcoin and blockchain technology and has publicly expressed his confidence in and support for the industry. Texas, the Lone Star State, is the second largest state in the US, with an economy that would have been rated the 9th largest in the world if it were measured as a country. The interest of the governor in the blockchain industry has sparked excitement in the crypto community.

In a recently resurfaced clip shared on Twitter, the governor said Texas sees the future of what Bitcoin and blockchain technology means to the entire world. Governor Abbott says he aims to make Texas a hub for blockchain technology and Bitcoin by making Texas a blockchain-friendly environment that does not have the sense of friction that comes along with high regulation.

Bitcoin [and blockchain] is the cutting-edge of innovation in the world right now.

Greg Abbot, governor of the state of Texas

The governor sat with the Texas Blockchain Council in a block-cast earlier this year to discuss blockchain technology and Bitcoin. The Texas Blockchain Council is a non-profit industry association that comprises companies and individuals that work with blockchain and distributed ledger technology with a mission to promote blockchain technology initiatives that benefit the citizens of Texas. Its notable partners include Binance.us and Blockchain.com, among others.

Texas has been implementing the type of legislation that would make it more inviting for blockchain-based companies to do business and thrive. The governor also touched on how Bitcoin mining could be beneficial to the Lone Star State.

Since the commentary by the governor in March, interesting Bitcoin and blockchain-related developments have taken place in Texas including an influx of miners, votes on Bitcoin mining activities, and other developments that have made Texas take the stride towards becoming a ‘Bitcoin country.’

How Bitcoin Mining Could Benefit Texas’ Energy Sector

In Governor Abbott’s commentary, he explained that Bitcoin miners’ high energy demands could be beneficial to the state of Texas by generating more demand for power, thereby driving the investment incentives needed in the state’s power sector.

Texas also runs demand response programs, which aim to balance the demand and supply of electricity during peak consumption periods. In demand response programs, high-power users, like crypto miners, who do not have an urgent need for power could shut down their power consumption at these peak periods to serve users who are in pressing need of power, such as households during a cold winter storm, hospitals, or other businesses that cannot afford to go offline. The high-power miners are in turn compensated by the government for the duration of their power shutdown.

The Electric Reliability Council of Texas (ERCOT) have noted that crypto miners are particular parties of interest in demand response programs as miners can shut down their electricity demand instantaneously, in real-time. Bitcoin miners, in the spirit of compliance, have been working with software companies to develop software that will enable miners and electrical grid operators to monitor and control power loads in real-time.

The benefits of crypto mining on the power grid were evident during the recent heatwave that rocked Texas. Crypto mining firms in the state helped to stabilize the grid by curtailing mining operations anytime ERCOT sent out an energy conservation alert. Texas-based crypto mining facilities including Argo Blockchain (ARBK ) and Riot Blockchain confirmed their participation in the ERCOT’s demand response program and the resulting energy conservation achieved during the heatwave.

The Blockchain Trend in Texas

Since Governor Abbot’s interview with the Texas Blockchain Council, the wave of blockchain technology and cryptocurrencies have been spreading in the state. Some notable developments include:

• The city of Fort Worth’s partnership with the Texas Blockchain Council to mine Bitcoin in the city hall building using Antiminer S9 Bitcoin miners donated by the Texas Blockchain Council.
• An influx of cryptocurrency miners in Texas – mainly in the rural counties, as recently reported by the Texas Tribune. Argo Blockchain, a large crypto mining firm, opened a 125,000-square-foot crypto mining facility in Dickens County in May.
• The Texas NFL team Houston Texans teamed up with Bitwallet to offer its fans the ability to purchase its game suites using crypto. The Dallas Cowboys also signed a crypto sponsorship deal in April, in which Blockchain.com became its official digital assets partner.

Oppositions to Texas’ `Bitcoin country` Ambition

As expected, not every Texan is a fan of Bitcoin and digital assets. In parts of the state where crypto mining facilities have been established, some groups have staged protests against crypto mining firms and mining activities. On October 18, a small group who called themselves the Concerned Citizens of Navarro County gathered outside the Riot Blockchain facility in Corsicana, Navarro, Texas. The protesters alleged that crypto mining activities are destructive to the community.

Lobbyists in Washington are also pressing the energy regulators in Texas to disclose in-depth details of energy consumption by mining companies. Last month, Senator Elizabeth, a known anti-crypto crusader, and two other Senators and four Members of Congress, sent a letter to ERCOT pressing for details on crypto mining activities in Texas and the compensation mining companies receive when they shut down their mining rigs to conserve grid power.

The opposition to Texas blockchain ambitions seems to pose no serious threat as Bitcoin, crypto, and blockchain-based activities have continued to flourish in the state. The recently concluded Texas Blockchain Summit went on as usual with high hopes for the future of the blockchain industry, and optimism that Texas will continue to play an active role that would bolster growth in the industry.

To learn more about Bitcoin, visit our Investing in Bitcoin guide.