Texas: The new cryptocurrency capital for China’s Bitcoin miners
In May, China announced a crackdown on Bitcoin mining and trading. This forced many crypto coin miners to flee to Texas, which is quickly becoming the next crypto capital.
Kevin Pan, CEO at Poolin — the second-largest bitcoin mining network in the world — left for Texas the next day after the announcement. Vowing to never come back again.
Before the crackdown, which plunged Bitcoin prices and caught miners unexpectedly, China was home to about 70% of global mining power.
The Bitcoin mining “refugees” are now urgently seeking shelter in North America, Russia, or Kazakhstan. Moving fast is key since time is money when mining bitcoin.
Mining Bitcoin takes lots of energy
The Poolin CEO and his team are among the many “mining refugees” who found a home in Austin, Texas. Some now call this the “Great Mining Migration”.
Bitcoin is a digital currency that exists only online — a virtual coin with no physical form. Bitcoin miners earn the digital currency by running (powerful) computers that solve complex math problems.
And this takes a lot of energy.
So, top on the list for Bitcoin miners are:
- Cheap electricity (to run the computers for hours)
- Relaxed crypto regulation laws.
Texas fits the description to a tee.
The next global hub for Bitcoin mining
Besides the juicy barbeques and vast shooting ranges, Texas offers legal protection to businesses — a major attraction to Bitcoin mining companies, such as Poolin.
What even paves the way for crypto companies to settle in Texas is this:
First, Greg Abbott — the Governor of Texas — supports cryptocurrency. He even tweeted about it in June.
Second, Texas recently became the second US state (after Wyoming) to acknowledge blockchain and cryptocurrency in its commercial laws.
China’s miners picture excellent stability and opportunities in Texas. A case in point is the Shenzhen-based firm, BIT mining. It plans to construct a $26 million Texas data center.
Beijing-based Bitmain also seeks to expand its facility in Rockdale, Texas — making the small town a new frontier for bitcoin mining.
Texas takes its freedom and rights seriously, and so do bitcoin miners. It’s this underlying connection that makes the state of Texas so ideal for Bitcoin mining.
According to experts, China’s crackdown resulted from the crypto industry becoming too powerful. They had impressive control over the financial markets, which was a threat.
By migrating to the US, the Bitcoin miners can now access a thriving and innovative community. The US gains in terms of talent acquirement and crypto innovation systems. Both sides win!