• Texas paid a bitcoin mining company, Bit Deer, $175,000 per hour to shut off its machines due to winter storms in 2021.
• The cash was meant to prevent the power grid from being overloaded and provide relief for people who needed electricity to heat their homes.
• Bit Deer earned up to $18 million for not working over the four-day period.
Texas Paid Crypto Mining Firm
In early 2021, the state of Texas paid a bitcoin mining company called Bit Deer approximately $175,000 per hour in order to shut off its machines due to winter storms in 2021.
Reason Behind Payment
The cash was meant to prevent the power grid from being overloaded and provide relief for people who needed electricity to heat their homes. These severe winter storms ultimately led to several deaths and other issues such as blackouts and freezing temperatures.
Crypto Mining Companies Move To Texas
Over the past several years, Texas has become home to a wide array of crypto mining companies due to China ending bitcoin mining in summer of 2021 dubbing it illegal. This influx of digital currency mining enterprises caused a limitation on power sources which made it difficult or more expensive for common people looking for access.
Money For No Work
Bit Deer earned as much as $18 million over the four-day period with no work required due this payment by Texas government .It raised many eyebrows amongst eco friendly individuals who thought that this practice should be outlawed fully given it is allegedly leading Mother Earth towards a dismal path with no return from.
Overall, while Bitcoin mining can lead to some environmental concerns, sometimes it is necessary during times of crisis when the right resources are not available or too expensive for those seeking them out. In this case, paying Bit Deer helped alleviate some of the difficulties associated with these winter storms and provided relief throughout affected areas in Texas.