The couple main reason why Texas bitcoin miners are abandoning crypto, Is that data centers are quickly evolving to support new AI needing the newest technology but overall energy demands. AI is a money mine and the profits you can get from it. People and companies are leasing or going to AI to make the most money.
Companies in Texas have so much power in their companies, since in Texas also the tax is low and the land is plentiful they can command of the states deregulated energy market. The energy consumption of bitcoin mining is notoriously energy intensive which means they need substantial computational power. As concerns over climate change and the energy sustainability grow, many miners are finding it increasingly hard to justify the energy they have and its consumption. This is the case especially in Texas, where the electricity costs fluctuate dramatically.
Regulatory pressure
The government worldwide is starting to regulate cryptocurrency mining more stringently, big and main places concerns over energy use and financial stability Texas. Texas has been a haven for miners because of Texas deregulated energy market while facing calls for oversight. because of that it creates a challenging environment for the miner who will thrive on predictability.
Market volatility
In the crypto market it is known for its volatility with the Bitcoin prices seeing wild fluctuations. with it being really unpredictability, it is really difficult for miners to have long term profitability which pushes miners to seek other stable investment opportunities. Many miners give up on Bitcoin for that reason and don’t see any upside in Bitcoin while switching can find upside faster and make it safer for Bitcoin miners. AI is offering a wide range of applications to choose from which makes Bitcoin almost nothing.
Related stories:
https://www.coindesk.com/policy/2022/08/29/the-end-of-the-texas-bitcoin-mining-gold-rush/
https://www.economist.com/united-states/2024/08/27/why-texas-republicans-are-souring-on-crypto
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https://qz.com/bitcoin-miners-ditching-crypto-for-more-profitable-ai-1851598502