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Takeaways from Texas Blockchain Summit: Can Miami and Texas Build Safe Haven for Mining and Blockchain?

  • Following China’s ban on cryptos and mining, Miami and Texas are looking to become dominant hubs in North America
  • Miami and Texas, two pro-crypto regions, have policies that have attracted miners and blockchain developers to the region
  • Texas now accounts for more than 14% of the Bitcoin hash rate in the U.S.
  • In addition to being the first city to launch a city coin, Mayor Suarez has advocated for Bitcoin miners to access the city’s nuclear plants.

Following the outlawing of crypto mining operations in China, a country that once contributed as much as 65% of Bitcoin’s hashrate, miners have fled to other more welcoming countries.

Texas and Miami have been some of the biggest beneficiaries of the Chinese ban on cryptos. As mining shifts location, what have Miami and Texas been doing to establish themselves as safe havens for miners and blockchain?

The Miami Approach

Miami became the first municipality in the world to accept cryptocurrency contributions through its own cryptocurrency. Two months after the launch of MiamiCoin, the South Florida city announced that it had made more than $7 million for the city.

Miami’s crypto approach is largely driven by mayor Francis Suarez, who has been a steadfast advocate for cryptos. In addition, Mayor Suarez has noted that crypto is a “major priority” for him as he attempts to build Miami into the crypto capital of the world. 

Mayor Suarez is pushing for taxes to be paid in Bitcoin and employees to get salaries in Bitcoin. The pro-Bitcoin mayor has also favoured crypto mining, as the city looks to become a major mining location in North America.

At the Bitmain Digital Mining Conference, Mayor Suarez strongly advocated for adopting innovative tech in Miami. In addition, Suarez has also hosted Satoshi’s White Paper on Miami’s government website.

Mayor Suarez has advocated for Bitcoin miners to have access to the city’s nuclear plants. He believes that nuclear power in the city can grant miners access to inexpensive power and is located far from residential areas.

According to Mayor Francis Suarez, the concerns about Bitcoin’s environmental impact “come from the fact that a lot of the mining was being done in coal-producing countries.” He proffered a win-win solution that could establish Miami on the mining map.

Texas Is Winning the War to Attract Bitcoin Miners

Texas has been setting up a structure to attract miners looking for a place to settle. For example, at the Texas Blockchain Summit held in Austin, Senator Ted Cruz opined that wasted natural gas could be used for cryptocurrency mining.

He believes that miners will benefit while helping the energy industry bring more stability to the state’s electricity-generating network.

Senator Ted Cruz said;

“In five years, I expect to see a dramatically different terrain, with Bitcoin mining playing a significant role [in] strengthening and hardening the resiliency of the grid.”

The governor of Texas, Greg Abbott, is another big crypto believer. In June, Texas recognized blockchain and cryptocurrency trading as legal, paving the way for companies in the sector to more easily operate there.

The duo shares the opinion that the millions of cubic meters of natural gas burned in Texas oil wells could now be used to power thousands of servers and computers dedicated exclusively to Bitcoin mining.

While Texas is pushing for its establishment as a mining hub, the state already accounts for more than 14% of the Bitcoin hash rate in the U.S. Texas currently houses the largest mining facility in North America in Rockdale. 

The 100-acre Whinstone facility consists of 115,000 computer servers mining for Bitcoin. Chad Harris, the CEO of Whinstone, has disclosed that the company is currently building four new buildings that will more than double its mining capacity. In addition, Whinstone is just one out of many companies building large-scale mining farms in rural Texas.

Texas has not only encouraged mining; it also is encouraging cryptocurrencies. According to a survey, more people in Texas are inclined towards friendly regulations of the industry. This outlook will make it possible for Texas to capture the Bitcoin migrants

On The Flipside

  • While Texas and Miami have made the news for establishing crypto-friendly policies, another region contributes more to Bitcoin’s hashrate
  • New York contributes 19.9% of Bitcoin’s hash rate, and is the biggest contributor in the U.S.

Why You Should Care?

Texas and Miami already have a positive outlook towards cryptocurrencies and are putting in place the infrastructure to make them safe havens for blockchain and mining. We have already seen increased blockchain and mining activities in these regions, setting them up to possibly be crypto capitals in the future.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.