Bitcoin has often been criticised for the significant energy consumption associated with the proof-of-work blockchain network’s mining process. Whereas some perceive a challenge, others see an opportunity. One of these ‘others’ is the United States of America’s state of Texas, which has been aggressively courting Bitcoin miners.
Brad Jones, the temporary CEO of ERCOT – the Electric Reliability Council of Texas, which supplies electricity to almost 90% of the state – stated that he is a proponent of Bitcoin. He made the comment on a tour of the state, when he spoke with energy users in town hall meetings.
“I am a proponent of bitcoin… “However, I’m too risk-averse to invest in bitcoin,” Jones told a throng of Frisco, Texas citizens.
Where the CEO’s sentiments originate
Texas has been renowned for having a rather weak power infrastructure, despite its high reliance on renewable energy sources such as nuclear, solar, and wind. This is because, in order to operate well, an electrical grid must be capable of seamlessly balancing power supply and demand, which is one of the system’s shortcomings.
The grid has often experienced periods when it is either generating too much energy in response to low demand or not providing enough energy to fulfil demand. This was the case earlier this year, when the system went dark in the midst of very cold winter weather due to a shortage of electricity to satisfy demand.
The CEO shows how Bitcoin mining and the state of Texas may benefit from one another. This is because Bitcoin miners need a significant amount of electricity, which the state can provide at extremely competitive rates. The company’s power supply production is likely to expand even more as it seeks to integrate a significant amount of renewable energy generation into the grid. He argues that during periods of low demand, Bitcoin miners may “soak up” this spare power supply.
The cherry on top is that Bitcoin miners may shut down their equipment at any time to free up electricity in the event of a big surge in home power consumption.
“These bitcoin [miners] saw this as a tremendous opportunity. They may earn money by using energy. That is why they are visiting the state. “However, this is not always a terrible thing,” Jones remarked. “As a result, I believe it is a very important prospective resource for us.”
Texans would benefit from enhanced energy infrastructure. With another winter season approaching, it has become even more critical for the state to strike the necessary balance of electricity demand and supply to avoid catastrophic blackouts. Ted Cruz, a Republican member of the Texas House of Representatives, has also raised the matter.
Cruz, who has long been pro-Bitcoin, has emphasised that he views Bitcoin as a tool to bolster the state’s energy infrastructure, not as a consumer of energy.
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