Bitcoin miners are under the spotlight again due to new accusations about their impact on Texas' electricity grid. This has sparked public outcry and debates over the future of crypto mining.
Bitcoin Mining and the Texas Energy Grid
The focus of the controversy is the Electric Reliability Council of Texas (ERCOT), which manages the state's power flow. Reports indicate that ERCOT pays Bitcoin miners to cease operations on days of high electricity demand. For instance, last August, Riot Platforms earned four times more money by halting their mining activities. American journalist Robert Evans stated that 'the primary profit from industrial Bitcoin mining in Texas is being bribed by the state not to destroy the grid.'
Calls for Change
Critics are calling for reforms in how Bitcoin miners are charged for electricity. Ed Zitron, CEO of media firm EZPR, voiced his frustration on social media: 'This should not be how this works! Bitcoin miners should pay more for their electricity and be fined if they use too much, not be paid NOT to mine Bitcoin!' This sentiment is echoed by others, including former Bloomberg Opinion columnist Noah Smith, predicting strong backlash against miners in Texas.
Different Perspectives
Some commentators accuse Bitcoin miners of holding the Texas power grid hostage. Military technology journalist Kelsey D. Atherton suggested that the government should seize their equipment and cut them off the grid instead of paying them not to work. Economist Nathan Tankus likened this business model to Enron: 'Crypto has reinvented a more legally permissible version of Enron’s ghost orders for which they were paid to cancel.' However, well-known Bitcoin advocate Pierre Rochard defended the practice, pointing out that ERCOT’s Ancillary Services pays load resources like Bitcoin miners to stay in reserve, just as they pay peaker plants to stay off in reserve to balance the grid.
As the debate continues, the future of Bitcoin mining in Texas and its impact on the state’s power grid remains uncertain. One thing is clear: the conversation is far from over.
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