When cryptocurrencies started to become popular, the first thing that people started to consider was how they would gather them. Seeing how these tokens only existed online, it was fair to assume that people would not be able to access it. However, people soon found out that mining is a real possibility for cryptocurrencies, and it has since been an integral part of the crypto economy. Companies that specialize in mining are able to help with the demand and supply for various cryptocurrencies. And the place that they had made their haven was China, before it started banning them.
Before its more recent crackdown on the crypto market, China was the booming capital for this new age of assets. And as more and more people started investing, the more profitable it became to be a crypto miner.
Another reason why China was so successful during its time for crypto is a combination of cheap electricity, talent, and location. Cheap electricity was especially important for cryptocurrencies, considering how computers require a lot to mine tokens effectively. But when China decided to ban cryptocurrencies, it decided all aspects of it, which included mining.
Following the very abrupt ban on cryptocurrencies, one of the biggest migrations of firms occurred. A variety of Fintech firms started to make their way out of the country and look for other places to do business. Oddly enough, one of the places that they stumbled upon was Texas.
Companies moved to countries like Ukraine or Singapore, which have better ties with cryptocurrencies. Both countries have a history of accepting crypto and were at certain points looking to establish their own CBDCs. Therefore, they made for very obvious places for companies to turn a new leaf.
However, the reason that so many companies chose Texas was because of a few factors. For one, Texas was offering considerably cheaper electricity than anywhere else in the US. This meant that companies can easily mine crypto without having to worry about it eating into their pockets
Furthermore, Texas also has more land readily available for expansion. Since these mining machines can take up a lot of space, it is obvious that this would be any company’s top priority. Finally, there is also the fact that the US is starting to soften up to cryptocurrencies. Despite the President having his reservations about crypto, he has also gone on to accept cryptocurrencies. Crypto was part of the infrastructure bill and the government is making plans to better regulate it and implement it. Considering all of these factors, it is quite obvious that Texas is slowly becoming the crypto capital of the world.
