New York Is The Most Attractive State for Bitcoin Miners, But There’s a Catch

Recent research showed that nearly 20% of bitcoin’s hash rate within the United States is in New York, while Kentucky (18.7%), Georgia (17.3%), and Texas (14%) follow closely.

New York Leads The Way

The financing and advisory company focused on digital asset mining and staking – Foundry USA – conducted a survey to find out which states American bitcoin miners prefer the most as a location of their endeavors. Nic Carter – Co-Founder of Castle Island Ventures, who presented Foundry’s data – said the research is the first of its kind:

“This is the first time we’ve actually had state-level insight on where miners are unless you wanted to go cobble through all the public filings and try to figure it out that way. This is a much more efficient way of figuring out where mining occurs in America.”

Foundry, though, does not include all of the US-based mining farms in its database. Such is the example with Riot Blockchain, one of the largest companies in its field with a considerable presence in Texas. If it had been part of the survey, the Lone Star State could have registered a higher percentage, Carter explained. Riot was not a part of the research because it doesn’t use Foundry, the report explained.

Nic CarterNic Carter, Source: Yahoo Finance

It is worth noting that most of the states on the top of the statistics are well-known as epicenters of renewable energy. New York generates much of its electricity from hydropower facilities. It also has a relatively cool climate. As such, it is no wonder that it grabbed the attention of almost 20% of the bitcoin miners.

Carter pointed out that BTC mining in the state of New York is so low in CO2 intensity that banning it would be, in fact, more harmful for the environment:

“Bitcoin mining in New York is actually very low in carbon intensity, given its hydropower, and, as a consequence, if New York were to ban bitcoin in-state, it would probably raise the carbon intensity of the bitcoin network overall. It would be the complete opposite of what they wanted.”

According to a recent report, the United States is not responsible for more than 35% of the global BTC hash rate, after China ousted all miners out of its borders.

Shouldn’t Be Texas Higher on The Ranking?

Texas may have ranked fourth on the survey, but it deserves the top position, according to many experts. Crypto-friendly politicians, a big chunk of the population in favor of bitcoin, low energy prices, wind-powered electricity: the Lone Star State offers it all.

Some of the leading names in the cryptocurrency mining industry operate in Texas. Such is the case with the aforementioned Riot Blockchain, which has a 100-acre site in Rockdale.

As CryptoPotato recently reported, the total digital asset ban in China caused many local miners to move their operations abroad, with Texas being the most tempting option.

Alex Brammer – an Executive of the cryptocurrency mining pool Luxor Mining – pointed out West Texas as the most suitable mining area. According to him, the combination of large amounts of capital, a substantial size of landmass, and low electricity prices are what escalates it to the top place:

“You just can’t beat the cost of power in West Texas, and when you couple that with a skilled power management company that can manage your demand response programs, it’s almost unbeatable anywhere else in the world.”

Publication date: 
10/17/2021 - 20:54
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