Subscribe To Our Newsletter

    Get the latest crypto news right into your email box. No spamming. We hate it too. Only pertinent news you need to know

    Latest News

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 2022

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 2022

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 2022
    Facebook Twitter Pinterest LinkedIn
    RareHippo – Crypto, Bitcoin, Blockchain News & Views
    Facebook Twitter Pinterest LinkedIn
    • Home
    • Bitcoin
    • NewsWire
      1. Latest News
      2. Top Stories
      3. Features
      4. What’s Hot
      5. Must Read
      6. Trending
      7. Spotlight
      8. Editors’ Picks
      9. View All

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      El Salvador’s Companies Barely Bother With Bitcoin

      March 19, 2022

      New Jersey legislation aims to prevent public officials from being gifted NFTs

      March 18, 2022

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Crypto’s Preferred Currency for Political Donations Isn’t Bitcoin. It’s Dollars

      March 19, 2022

      Meta Sued by Australian Watchdog Over Scam Crypto Advertisements

      March 18, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      Two Senators propose crypto legislation for tax exemption on capital gains

      May 1, 2022

      Wall Street Reluctantly Embraces Crypto

      May 1, 2022

      Warren bill draws outcry over broad terms, but seems unlikely to pass

      March 20, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Russia-Ukraine War Is Bringing Out the Good, Bad, & Ugly of Cryptocurrencies

      March 18, 2022

      The ‘world’s most advanced’ digital human wants you to buy her NFT art

      March 15, 2022

      FTX crypto exchange wins license in Dubai to open regional headquarters

      March 15, 2022

      Crypto Startup Founded by Ex-Meta Employees Raises $200 Million

      March 16, 2022

      U.K. Crime Agency Wants to Regulate Crypto Transaction Mixers

      March 15, 2022

      A Wall Street Quant Turns His Crypto Firm Into a Unicorn

      March 14, 2022

      Standard Chartered’s crypto custodian to help clients earn yield on token holdings

      March 14, 2022

      Man passing as UN affiliate convicted for crypto scheme

      March 18, 2022

      The Future of Crypto Is Boring — and Bright

      March 15, 2022

      Investors turn to crypto funds, companies as Russia-Ukraine crisis escalates

      March 15, 2022

      Binance Wins Crypto Licenses From Dubai, Bahrain

      March 15, 2022

      Why Bitcoin’s Environmental Problems Are So Hard to Fix

      March 16, 2022

      Americans Want Crypto From Their Banks

      March 15, 2022

      Why Decentralized Exchanges Are Important in the Crypto Economy

      March 10, 2022

      Binance plots M&A spree as regulators scrutinize crypto trading unit

      March 10, 2022

      Amid New Executive Order, White House Director Sheds Light On Crypto Policy

      March 16, 2022

      Bitcoin Evangelist Saylor Tells Economists Why They’re Wrong

      March 15, 2022

      Crypto Mania in Texas Risks New Costs and Strains on Shaky Grid

      March 15, 2022

      Bitcoin’s scared of commitment, Mr. Biden

      March 15, 2022

      Coinbase Fixing Problem That Halted Payments From US Banks

      October 9, 2022

      Binance May Spend Over $1 Billion This Year on Deals, CZ Says

      October 9, 2022

      Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

      May 1, 2022

      Two Senators propose crypto legislation for tax exemption on capital gains

      May 1, 2022
    • Altcoins
      • Ethereum
      • XRP-Ripple
      • Solana
      • Dogecoin
      • Cardano
      • Shiba Inu
    • Topics
      • Cryptocurrencies
      • Investments
      • Markets
      • NFTs
      • DeFi
      • ETFs
      • DAOs
      • Crypto Regulation
      • Metaverse
      • Blockchain & Web3
      • Blockchain Gaming
      • Crypto Exchanges
      • Crypto Mining
      • Stablecoins
      • Cybersecurity
      • Digital Currencies – CBDC
      • Crypto Book Reviews
      • Technology
      • Internet of Things
    • Opinions
    • Explainers
    • Press Releases

      Former Uber LatAm Head of Policy Leads Crypto Ride-Hailer Drife Toward Planned Global Expansion

      March 7, 2022

      European index provider for crypto assets Vinter raises $3.4m funding

      February 22, 2022

      PR – British crypto processor brings in $60 million for expansion in Europe

      January 25, 2022

      PR – CoinMENA obtains 2nd crypt0 license from European Union

      January 25, 2022

      NFT investment specialist looks to acquire Pluto Digital for £96m

      January 24, 2022
    RareHippo – Crypto, Bitcoin, Blockchain News & Views
    Home»Crypto Mining»Crypto Mania in Texas Risks New Costs and Strains on Shaky Grid
    Crypto Mining

    Crypto Mania in Texas Risks New Costs and Strains on Shaky Grid

    By Naureen S Malik and Michael Smith
    March 15, 2022By Bloomberg6 Mins ReadNo Comments
    Facebook Twitter LinkedIn Pinterest Reddit WhatsApp Email Tumblr VKontakte Telegram
    Share
    Facebook Twitter Pinterest Reddit WhatsApp Email LinkedIn Tumblr Telegram

    David Naylor’s knowledge of cryptocurrency was limited, to say the least, when Bitcoin miners started approaching him last year about buying power from the utility he runs across a 16-county stretch of rural Texas.

    “I was writing it down, B-i-t-c-o-i-n,” said Naylor, chief executive officer of Rayburn Country Electric Cooperative Inc., which provides power to about 229,000 customers — mostly small towns and homes — north and east of Dallas.

    Donate to RareHippo Now!

    Naylor has had to get up to speed quickly. He’s received multiple proposals to build Bitcoin mines, with rows of electricity-guzzling computers that solve mathematical problems to create digital coins, on what’s now ranch land. Two of the mines would each require as much as $20 million to fortify power lines and avert blackouts.

    Each would consume enough electricity to power as many as 60,000 Texas homes. Utilities like Rayburn have to provide service to miners if it’s technically feasible to do so, but upgrades to the grid threaten to drive up bills for consumers already shouldering price shocks for almost everything.

    Us-cryptocurrency-climate-employment-china
    Power lines for a bitcoin mining facility in Rockdale, Texas. Photographer: Mark Felix/AFP/Getty Images

    Rayburn’s talks with Bitcoin miners illustrate the conundrum utilities face as crypto companies like Riot Blockchain Inc. and Argo Blockchain Plc flock to Texas, spurred by almost nonexistent regulation, relatively cheap electricity and Governor Greg Abbott’s quest to make the state the global center for crypto mining. 

    Besides threatening to boost power bills, the dozens of Bitcoin mines proposed are also a risk to the state’s shaky power grid after a deep freeze last year left hundreds dead and pushed up prices so much that utilities were left with massive debts or bankrupted.

    “These are just challenges we’ve never faced before,” Naylor said in an interview.

    Texas utilities may have to figure it out largely on their own, weighing the cost of upgrades against long-term benefits like revenue that can be invested in protecting against outages.  It falls to the Electric Reliability Council of Texas, the state’s grid operator, to evaluate how Bitcoin mining will affect the power system. 

    So far, Ercot hasn’t publicly disclosed what it’s done, but its members will vote this month on creating a task force to understand how many mines will connect to the grid and how fast. 

    It’s too early to estimate how much Texans’ power bills could rise as a result of Bitcoin mining. But the city of Plattsburgh, New York, may provide clues. After power prices surged, Plattsburgh temporarily banned crypto mining in 2018 until it could pass measures to regulate the industry. Two counties in Washington state took similar steps.

    Overall, Bitcoin mining cost residents and businesses in upstate New York about $250 million a year in higher annual electricity bills, a 2021 University of California Berkeley study concluded. Mining pushes up monthly electric bills about $8 for individuals, and $12 for small businesses, the researchers estimated. 

    Industry advocates argue that as Bitcoin mining booms in the state, someone will come along to build more power plants. One year after the deadly winter storm, a record amount of solar capacity is planned for Texas. 

    Plus, miners say their ability to quickly throttle back operations when the grid needs power will actually make the system more stable. Bitcoin mines shouldn’t cost consumers much because they seek out more sparsely populated areas with electricity to spare, said Lee Bratcher, president of the Texas Blockchain Council, a lobbying group. 

    But Rayburn’s experience shows that’s not always the case. Miners are looking at remote sites, which in some cases will require millions of dollars in grid upgrades, Naylor said.

    Utilities across Texas are fielding proposals. American Electric Power Co. is weighing requests from 75 to 100 Bitcoin miners to connect primarily across West Texas and is evaluating the need for upgrades to handle the mines. Golden Spread Electric Cooperative, which serves the Texas Panhandle and Central Plains, is studying inquiries from two dozen miners.

    Austin Energy, which powers the state capital, says investors want to build five mines just outside Austin that would need a total of 1,000 megawatts of electricity, equal to about two-thirds of the city’s current demand. That may require the utility to build more transmission lines, said Erika Bierschbach, vice president of energy market operations. 

    “The risk is that we don’t manage the opportunity very well,” Bierschbach said. Austin Energy, Rayburn and Golden are considering whether to require miners to pay higher power rates.

    Upgrades to the power system will be needed because the grid “can’t handle all of this new load,” said Evan Caron, a former power trader in Austin who invests in energy technology.

    Us-cryptocurrency-climate-employment-china
    A bitcoin mining facility in Rockdale, Texas.Photographer: Mark Felix/AFP/Getty Images

    Given the crypto industry’s notorious volatility, there’s also the chance that miners will close up shop, leaving ratepayers to cover the costs of upgrades that may no longer be needed. To mitigate that risk, utilities can ask for a deposit, which would be refunded after the miner uses the power for a certain period of time.

    Worldwide, mining consumes an amount equal to twice what’s needed to power every light in the U.S., according to the University of Cambridge’s Bitcoin Electricity Consumption Index.  

    Crypto news & Views

    But in Texas, the payback can be immense because electricity is so cheap, Caron said. Even if Bitcoin prices fell to $30,000 — roughly 25% below current levels — miners would still make revenue equal to about six times the cost of power, he said.

    At Rayburn, CEO Naylor wants to make sure he’s not taking undue risks to help deliver those returns. Rayburn had to sell $908 million of bonds in February to cover the bill from Ercot for soaring power prices during last year’s crisis, and it will take 28 years for customers to repay the debt.  

    The risks may pay off because crypto miners have pledged to shut down in times of crisis to conserve power, Naylor said. The biggest Bitcoin miner in Texas, Riot Blockchain, did so in February and last year, and others, such as Compute North LLC and Bitdeer Technologies Holding Co., have committed to shutting if needed.

    Even with those safeguards in place, Bitcoin mining comes with costs. “It’s definitely going to have an impact,” Naylor said. “It’s simple supply and demand.”

    Read full story on Bloomberg

    Crypto Mining
    Previous ArticleDemocrats divided over crypto’s future
    Next Article Americans Want Crypto From Their Banks

    Related Posts

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 20221 Min Read

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 20223 Mins Read

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 20224 Mins Read

    Two Senators propose crypto legislation for tax exemption on capital gains

    May 1, 20225 Mins Read

    Wall Street Reluctantly Embraces Crypto

    May 1, 20225 Mins Read

    Warren bill draws outcry over broad terms, but seems unlikely to pass

    March 20, 20225 Mins Read
    Add A Comment

    Leave A Reply Cancel Reply

    Donate to RareHippo Now!
    Latest News

    Coinbase Fixing Problem That Halted Payments From US Banks

    October 9, 2022

    Binance May Spend Over $1 Billion This Year on Deals, CZ Says

    October 9, 2022

    Crypto Real Estate Is Here – Bitcoin Mortgages Are Just The Beginning

    May 1, 2022

    Two Senators propose crypto legislation for tax exemption on capital gains

    May 1, 2022

    Wall Street Reluctantly Embraces Crypto

    May 1, 2022
    Follow US & Win Prizes
    • Facebook
    • Twitter
    • LinkedIn
    • Pinterest
    Don't Miss
    Investments

    These 4 Billionaires Are Investing In A Startup Aimed At Making Them Richer

    January 28, 20223 Mins Read

    Compound, a wealth management startup built for wealthy tech investors, emerges from stealth with $37…

    Memecoin Faithful Aren’t Laughing Anymore as Rout Deepens

    January 21, 2022

    In Huge Precedent, IRS Says It Will Not Tax Unsold, Staked Crypto

    February 3, 2022

    Is Crypto Cloud Mining Safe?

    December 27, 2021

    Subscribe to Our Newsletter

    Get the latest crypto news right into your email box. No spamming. We hate it too. Only pertinent news you need to know

    Crypto news & Views
    Facebook Twitter Pinterest LinkedIn
    • Home
    • Privacy Policy
    • About Us
    • Donate to RareHippo
    • Get In Touch
    • NewsWire
    © 2023 RareHippo. Powered by 8 Dimensions

    The content of this website is for informational purposes only and is not intended as a substitute for investment or financial advice.

    Type above and press Enter to search. Press Esc to cancel.