The best states for bitcoin mining are highlighted on this map.

  • Digital coin miners compete in a low-margin business where electricity is generally the only variable expense.
  • They are enticed to migrate to the world's cheapest sources of electricity.
  • Electricity costs 18 to 19 cents per kilowatt hour in California and Connecticut, which is more than double what it costs in Texas, Wyoming, Washington, and Kentucky, according to the Global Energy Institute.
As new talent — and equipment — floods the market, 021 has been a fantastic year for bitcoin mining in America, but some places are clearly more tempting than others.

The latest data from from the Global Energy Institute, the average price of electricity is lowest in states like Texas and Washington, which explains why both regions are becoming increasingly popular for minting new digital currency.

While power costs aren't everything when determining where to build up shop, they certainly help.

Miners at scale compete in a low-margin business where energy is often the only variable cost, therefore they are motivated to shift to the world's cheapest power sources.

The cost of electricity varies around the United States.

You'll pay anywhere from 18 and 19 cents per kilowatt hour in California and Connecticut, but less than half that in Texas, Wyoming, Washington, and Kentucky, t he Global Energy Institute claims that which puts out an annual electricity pricing map for the United States based on the most recent full year of data from the US Energy Information Administration.

While “the energy mix available inside a state will play a big impact in state electricity pricing,” the institute warns that “energy-limiting policies in some states serve to artificially raise prices, making the price of power much higher for consumers and businesses.”

Finding affordable sources of electricity is ultimately what bitcoin miners are concerned about.

This is one of the reasons why the United States appeals to prospective miners so much, as it has some of the world's cheapest energy sources, many of which are renewable.

Most new miners relocating to North America, according to Fred Thiel, CEO of bitcoin mining specialist Marathon Digital Holdings, will be fueled by renewables or gas offset by renewable energy credits.

“Mining is price sensitive, so it seeks out the cheapest electricity, and the cheapest power tends to be renewable because burning fossil fuels incurs costs for extraction, processing, and transportation” Blockstream CEO Adam Back explained.

Washington state is a hotbed for hydroelectric mining farms, while Texas' renewable energy contribution is steadily increasing, with wind power accounting for 20% of the state's power in 2019.

However, electricity costs aren't everything. Policymakers who are kind and have adequate infrastructure are also important.

Take, for example, Texas.

It has a deregulated power grid that allows users can select between several power providers, and its government leaders are pro-crypto – ideal conditions for a miner looking for a friendly welcome and affordable energy supplies.

“Over the next few months, you will witness a tremendous shift,” bitcoin mining engineer Brandon Arvanaghi predicted. “In Texas, we have governors who are pro-mining, like Greg Abbott. In the United States, it will develop into a legitimate industry, which will be incredible.”

Long before it became popular, the United States invested heavily in cryptomining infrastructure.

There wasn't much demand for large bitcoin farms when bitcoin plummeted in late 2017 and the larger market entered a multiyear cryptocurrency winter. The opportunity to deploy cheap money to build up the mining ecosystem in the United States was spotted by US mining companies, which leaped at the chance.

Mike Colyer, CEO of digital currency business Foundry, which helped import over $300 million in mining equipment into North America, said, "The huge, publicly traded miners were able to generate funds to go make big purchases."

Companies like North American cryptomining operator Core Scientific kept creating hosting space throughout the period so that they could plug in fresh equipment, according to Colyer.  Core is one of the leading providers of blockchain infrastructure and hosting in North America, with offices in North Dakota, North Carolina, Georgia, and Kentucky.

Leave a Comment :


We will provide you latest market updates and analysis, for that you can JOIN OUR TELEGRAM CHANNEL and get daily profit and more facilities. If you want to JOIN TELEGRAM CHANNEL, click here to join.