Every three seconds, a new social media post relating to cryptocurrency is created. There is no denying just how popular cryptocurrencies like Bitcoin have become in the past few years. Making money with this type of investing is a lot harder than you probably realize. While buying, trading and selling cryptocurrencies can be lucrative, you will have to get into the world of cryptocurrency mining to really make money in this industry.
One of the biggest problems newcomers to the world of cryptocurrency mining face is the cost of keeping a mining rig running 24 hours a day. Usually, a small mining operation will have a number of rigs going at one time, which only increases the energy consumption and cost.
In the past year, large and small cryptocurrency mining operations have started to flock to the state of Texas. Why are these mining companies setting up shop in the Lonestar state? Read below for information on why Texas is fast becoming a hub for cryptocurrency mining activity.
Understanding the Energy Regulatory Environment in Texas
In order to understand why a new gold rush of sorts is happening in Texas, you need to understand more about recent changes to the energy regulatory environment in this state. In the past few years, the energy sector in Texas has been completely deregulated. This deregulation has opened the flood gates of competition in the world of electricity. Power providers in Texas are clamoring to offer cheap energy rates and reliable service. The cheaper the electricity rates in Texas are, the better it is for new cryptocurrency mining operations.
A $50 million mining facility backed by famous angel investor Peter Thiel opened in Texas just last year. This move shocked many who were unfamiliar with the deregulation of the energy market in this state. However, many in the mining industry saw this move as an indication that Texas was indeed the place where their companies could thrive. If you are contemplating setting up a cryptocurrency mining operation in the great state of Texas, you need to find the cheapest energy rate possible.
Luckily, you can do this with ease when using the TexasElectricityPlans website. With this website, you can check the various energy providers in Texas to figure out which one can offer the best rate. With an affordable rate, you can start a new cryptocurrency mining operation without having such massive overhead. This allows you to leave more room for profit with the mining venture in question.
Wind Power is on the Rise in the Lonestar State
Another reason for the sudden surge in cryptocurrency mining in Texas is the fact that this state is investing heavily in wind power. Most people fail to realize that Texas is the sixth-largest producer of wind power in the United States. Many of the wind farms you find in Texas are located in the western part of the state. In west Texas, there is a lot of desolate land that goes unused for the most part, which is why wind turbines have been placed there.
Entrepreneurs trying to get in on the cryptocurrency mining boom without leaving a huge carbon footprint view Texas wind power as a great solution. Many analysts believe that the amount of wind-generated power in Texas will only increase in the coming years. This is definitely good news for cryptocurrency mining startups looking to develop a long-term strategy that involves the Lonestar state.
The 21st Texas Gold Rush
While starting a cryptocurrency mining operation can be costly, it is a great long-term investment. The key to having success in this industry is finding ways to reduce overhead while increasing the number of mining rigs in your arsenal.