Latest Crypto News: What’s Next for Crypto Mining?
Crypto mining, like crypto use and adoption, has taken major strides in recent years. It has also taken a few hits. Government bans and winter storms make up our round-up of three crypto news headlines.
Texan Crypto Miner Riot Blockchain Shuts Down 99% Due to Storm
Following China's ban on crypto mining last year, miners packed up and went in pursuit of locations with more favourable conditions. One such location is the state of Texas owing to its cheap energy.
Following news of a winter storm expected to hit the state this week, crypto miners are almost completely shutting down. This is in anticipation of the strain that Winter Storm Landon may have on the power grid. Major crypto mining firm Riot Blockchain revealed on Wednesday that they cut off 99% of the power supply to their Rockdale data centre. Bitcoin mining firms in the area have taken a similar stance. Through the Texas Blockchain Council, the informed Governor Greg Abbott of their plans to either completely shut down or minimise their activity.
“As Texans, we want you to know that we are actively monitoring the incoming cold front, as we would any seasonal weather event. Likewise, we are taking proactive measures to shut down operations, shed load and create additional capacity in response to ERCOT's needs should it be necessary,” the letter by Texas Blockchain Council vice president Reed Clay read in part.
US Coal Hotbeds Transforming Into Crypto Mining Hubs
With coal production in the United States at an all-time low, coal companies are looking into a different type of mining, crypto mining. This move seems to have the support of lawmakers and leaders. In fact, the first state to launch crypto banking was Wyoming, widely known for its coal mining. Texas, a top beneficiary of the coal industry has become one of the top crypto mining regions in the US Kentucky Governor Andy Beshear signed off on a law that made crypto mining eligible for an alternative energy tax credit.
Last month Massachusetts Senator Elizabeth Warren, along with other members of the House and Senate, sent letters to crypto mining companies inquiring about their climate practices. Commenting on this Warren stated:
“I support a just transition for communities in coal country to ensure they have a secure place in the clean energy economy.”
However, “the data shows that crypto mining can have harmful impacts on local residents, including higher electricity costs, increased pollution, and weaker energy grids. Lawmakers have a responsibility to ensure that crypto mining does not harm vulnerable communities and exacerbate the climate crisis.”
Russian Central Bank Calls for Crypto Ban amidst Political Pushback
A round-up of crypto mining news would be incomplete without a crypto ban item. This time it's Russia.
In a bid to protect financial stability and the integrity of the country's monetary policy, Russia's central bank last month called for a ban on the use and mining of cryptocurrency in the country. The bank's request has been met with opposition from politicians who have since urged the bank to consider finding a way to regulate the crypto industry.