• In early 2021, the state of Texas paid a bitcoin mining company called Bit Deer approximately $175,000 per hour to shut down its machines.
• This was due to devastating winter storms that caused too much electricity in the grid and prevented many from gaining access to power they needed.
• The money doled out over a four-day period amounted to as much as $18 million for no work – ethically questionable and leading some to believe crypto mining should be outlawed.
Texas Paid Crypto Mining Firm a Lot of Money
In early 2021, the state of Texas paid a bitcoin mining company called Bit Deer approximately $175,000 per hour so that it would shut off its machines. This was due to devastating winter storms that caused too much electricity in the grid and prevented many from gaining access to power they needed.
No Work For Money
The money doled out over a four-day period amounted to as much as $18 million for no work – ethically questionable and leading some to believe crypto mining should be outlawed. Over the past several years, Texas had become home to many crypto mining companies due to its vast open spaces and low cost energy. Unfortunately this created issues with the power supply becoming limited and at times more expensive for common people.
Winter Storms Led To Problems
February of 2021 saw Texas suffer from winter storms Uri and Viola which led to blackouts and freezing temperatures for residents. Mining computers and other machinery were allegedly utilizing as much electricity as was required to power 6,500 homes which exacerbated these issues.
Is Mining Really That Bad?
Crypto mining has garnered something of a negative reputation amongst eco-friendly individuals who say it should be fully outlawed given it is allegedly leading Mother Earth towards an irreversible path. As much money as can be made through this practice, it raises questions about morality which don’t always have an easy answer or quick solution.
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