In early 2021, the state of Texas paid a bitcoin mining company called Bit Deer approximately $175,000 per hour.
Texas Doled Out Cash for No Work
For what purpose, you ask? Well, it wasn’t because the Lone Star State wanted to gain access to mined BTC units. It wasn’t to create jobs, and it wasn’t to help build the region’s economy. It was because the state was suffering from devastating winter storms, and the money was so that the company would shut off its mining rigs and not put the power grid in trouble.
The early 2021 winter storms suffered by Texas ultimately led to several deaths and a wide array of other problems. There were simply too many people blasting their heaters all day and night, and this led to serious issues with the state’s power sources. It also prevented many other individuals from gaining access to the power they needed to heat their homes and stay warm.
Over the past several years, Texas has become home to a wide array of crypto mining companies, many of which hail from China given their home country ended bitcoin mining in the summer of 2021 and dubbed the practice illegal. Texas – known for its vast open spaces and low-cost energy – seemed like a good place to set up shop and keep things going, but this has led to some unexpected barricades, as with so many digital currency mining enterprises now making their way to the rural south, power has become limited and at times, more expensive for common people.
February of 2021 saw Texas suffering from winter storms Uri and Viola. The events led to several blackouts and freezing temperatures for residents. Mining computers and other machinery used by companies like Bit Deer were allegedly utilizing as much electricity as was required to power 6,500 homes. The money the state paid to Bit Deer was doled out over a four-day period of no activity, meaning the firm garnered as much as $18 million for NO WORK. As much as we all love mining, in many ways, that just doesn’t sound morally or ethically right.
Is Mining Really That Bad?
Crypto mining has garnered something of a negative reputation over the years amongst eco-friendly individuals. They say the practice should be outlawed fully given it is allegedly leading Mother Earth towards a dismal path that there’s no return from. In addition, there have been several reports published in the past suggesting crypto mining utilizes more energy than most developing nations.
Even industry heads like Elon Musk have expressed concerns about the mining process. In early 2021, Musk was all set to let crypto holders buy Tesla vehicles with BTC, but the decision was later rescinded as Musk demanded answers regarding the cleanliness of miners’ energy sources.
