Tuesday, August 16, 2022

US is One of the Leading Destinations for Crypto Mining

The Takeaway:

Some of the top crypto mining firms in the world now call the United States their home.

Due to China’s recent crackdown on the practice, the US has emerged as one of the more appealing locations for crypto mining companies.

According to Jason Les, CEO of Riot Blockchain, Bitcoin mining in the US will continue to be very successful. One of the top US Bitcoin mining companies is Riot Blockchain.

 

What did Jason Les say?

Les responded to a query regarding cryptocurrency mining throughout this crypto winter by saying;

“I believe mining will continue to thrive in the United States, especially in grids like ERCOT in Texas, which offers a great business environment and abundant power. Even though the economics of Bitcoin mining has declined, there is still a huge window of opportunity.”

Additionally, grid initiatives like 4CP, CLR, and all of the programs offered by ERCOT assist miners to lower their energy expenses. Additionally, it encourages the grid to develop more generators. Therefore, I believe the expansion will continue, but expansion by increasingly effective operators. For players who want to succeed, efficiency and power strategy will be essential.

Les continued by saying that, according to the business, North America’s cryptocurrency market has room to grow. He also stated:

“So, we have our Winstone facility out in Rockdale, Texas, which, as far as we know, is the largest institution in North America and how we will think will soon be the largest in the world. Currently, we are increasing that to about 700 megawatts. We recently announced a new site we are developing about two hours away that will be even bigger than when finished, generating one gigawatt. So, without a doubt, we are continuing to grow our company, our power strategy, and our beneficial presence on the ERCOT grid.”

When asked about his thoughts on the impact of higher electricity costs and whether it is profitable, Les confessed that it does impact the mining industry. He said:

“Yeah, it does impact the economics. I mean, there’s a calculation you make here. We can look at Bitcoin mining revenue on a dollar per megawatt hour basis. So for the leading hardware right now, Bitcoin mining, generates about $130 a megawatt hour. So when you are looking at power prices relative to that revenue figure– and that’s whether you have a block of power secured or not. For example, you’re a miner that’s just real-time procuring power, if the price of power is above 130 megawatt an hour, it doesn’t make any economic sense to mine.”

Currently, Ethereum is the most popular coin mine. But with the coming of The Merge in September, the overall mining industry might shift significantly.

Bear Market Dominating the Crypto Industry

The crypto market has been fighting a bear market in the past few months, with most coins having fallen by over 70 percent from their all-time highs. Since last week, Bitcoin has been exchanging hands at $ 21,275, down 6 %. Ethereum was trading at $ 1,450, down by 9 % last week. 

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Vivekanandan Tiwari
Vivekanandan Tiwari
Vivekanandan is an IT graduate, He loves to write about blockchain-related techs. He is enthusiastic about Financial markets and is always eager to learn.

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