SBI Holdings and GMO Internet are all geared up to launch a massive Bitcoin mining facility in Rockdale, Texas. This supports a very strong narrative at play in the Bitcoin mining industry. More and more miners have moved away from Asia are migrating to the United States. Texas, in particular, has cheap energy and strong Libertarian roots, as reported by Bloomberg, January 8, 2019.
Mining Capacity Not Slowing Down
While the community has been breaking out into debates as to whether the Bitcoin halving is priced in or not, miners have seemingly taken their side. Bitmain recently came out with the S17, which cuts electricity consumption by over 40 percent, Blockstream unveiled a mining facility they have been keeping under wraps, and now the biggest Bitcoin mining facility is coming to Texas.
Northern Bitcoin AG will be running the facility after pivoting away from self-operated mines to leasing contracts to run facilities for other companies. The company now has stable margins without the worry of Bitcoin volatility hanging over their heads, but they will not benefit if the next Bitcoin bull cycle pushes prices like the previous ones.
Texas is the perfect spot for the mining facility. Known as the energy hub of the United States, it boasts the cheapest energy rates in the entire country; 20 percent of the region’s electricity is derived from wind turbines, so Bitcoin proponents can still make their ‘renewable energy narrative’ stick.
Regulation of Mining
With more players setting up shop in the United States, they will inevitably have to deal with whatever regulation the country decides to put forward. There are two scenarios in which this could unfold: the United States government brings down the full power of law down on these miners in an attempt to hinder Bitcoin or they offer them healthy terms and clarity in an attempt to build up the industry within their own borders and benefit from an expansion in economic activity.
Either way, miners will have global regulation on their hands if they continue to expand at current rates. Regulators will be worried about energy consumption among many other issues when they draft any legislation or directives regarding mining.
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