A Texas Solution to California Blackouts?

By Cje95 | Texas Living | 26 Aug 2020

Recently I have become more and more aware of how Texas is becoming a larger player in mining crypto with Bitcoin in particular. Being a Native Texan and traveling around the state growing up has allowed me to see the amazing developments. Texas while associated with oil and natural gas is also the United States leader in producing renewable energy! I remember when I first saw wind farms pop up in “the valley” or the lower part of the state. These farms have also been appearing in West Texas now. 

Layer1, a Bitcoin mining company backed by Peter Thiel is one example of this. Due to the cheap and abundant energy in Texas mining here is just economics. With companies able to build and used renewable power exclusively it fights back against the biggest factor against crypto, energy consumption. Layer1, who is currently facing a lawsuit from a cloud computing company, has also debuted a “Bitcoin Battery”. This “battery” allows for mining Bitcoin to be shut off and power to be directed to the grid when the grid is running low.

With California facing the huge power issues they are this has made me wonder if maybe this could be a solution for them? Could they somehow offer tax breaks to companies to mine Bitcoin there? If California would require the companies to build and use renewable resources maybe there is something along this line the state could do? Allowing a company to mine normally but redirect power to the grid as needed would be huge to prevent possible future blackout and would be clean energy instead of even low emission natural gas!


Bitmain is another example of the benefits of attracting mining. When the town of Rockdale lost there main business in 2008 the city of ~5,000 struggled deeply. The city was able to played their location and availability perfectly to snag Bitmain to build what was when announced the largest mining operation in the world which I’m sure has since been surpassed. While Rockdale produces its energy from mostly natural gas one has to admit that is a heck of a lot cleaner than coal, oil, or any other hydrocarbons. It also is relatively isolated on the grid so they do not have to worry about grid strain and possible blackouts.


Again I wonder if California, in the cities that have been hit hard by out sourcing of manufacturing and other economic issues, could really benefit from attracting mining companies. Possibly getting a big name like Antmine to do something similar to Layer1 at least to me would create the best of both worlds providing jobs and income while boosting renewable energy generation. 

It only makes sense to me for states to further try to lure these companies to their states. Since the question of China’s hashrate dominance has been an issue before this alleviate that concern. With miners always being cutting edge one could also hope that the companies could maybe push further renewable energy creation and the pesky age old question of storage. Will this solve all of the issues no. However, could Layer1’s battery creation be helpful I would think so! I would love to see crypto and blockchain be part of the solution to the energy issues like I am sure many of you would!

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Graduated from Texas A&M in May of 2020 had dabbled in crypto since 2017 but dove in at the end of 2019. December of 2020 packed up and moved to D.C.! Huge sports fan, space nerd, and international newsreader! Follow me on Twitter @Cje95_

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