How Bitcoin Miners Reinvigorated This Rural American Town – Bitcoin – US Dollar ($ BTC)

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Texas city of 5,600 people benefit from Bitcoin mining boom (CRYPTO: BTC) which has the potential to transform its landscape. What Happened: Rockdale, Texas – a city of 5,600 people – is home to two Bitcoin mining companies, spin-offs of Bitmain Bitdeer and Riot Blockchain Inc (NASDAQ: RIOT).

Bitmain is a Chinese company known for creating Bitmain Antminers, which are computers used to perform calculations that result in BTC rewards.

The two companies have found their new home on a property once occupied by aluminum major Alcoa, according to a CNBC report.

See also: How to buy Bitcoin (BTC)

Both companies are looking for resources such as land and energy, the latter of which is available cheaply in Texas, according to the report.

“The miners agree to buy a certain amount of electricity and what they do is sell it on the market. [value] and make a profit, ”Rockdale Mayor John King told CNBC.

King revealed that the miners also function as an “interruptible load” when the grid needs electricity, which is backed up by financial incentives.

“They have a contract for two or three cents … and they can sell it for $ 9 a kilowatt hour,” the city official said.

Why it matters: Rockdale is home to America’s largest Bitcoin mining facility, owned by Riot, who said once the facility’s expansion is complete it will have a total electrical capacity of 750 megawatts.

City economic development director James Gibson said Dallas only used 200 megawatts – adding, “So it’s like having downtown Manhattan, downtown Dallas, all in our backyard, ”CNBC reported.

Gibson revealed that Rockdale had 160 acres to take. The mayor reportedly handled 40 inquiries from mining companies wishing to relocate to Rockdale, many of them from China.

“They have money. They have equipment. They just need a place – and power, fast, ”Gibson said, according to CNBC.

Texas Blockchain Council Chairman Lee Bratcher noted the impact on the city’s economy before Bitcoin miners set up their base.

“Rockdale’s economy was devastated for several years until bitcoin miners showed up,” Bratcher said.

This is important because the city reportedly went through a rough patch with the closure of its only hospital in 2018 and saw its water supply deteriorate, with residents complaining of smelly red water coming out of their taps.

The United States has become the epicenter of Bitcoin mining globally after China forced miners to go out of business earlier this year.

Price Action: Bitcoin hit an all-time high of $ 66,930.39 on October 20. At the time of publication, the umbrella cryptocurrency was trading 1.39% lower over 24 hours at $ 60,581.31.

Riot shares closed nearly 1.2% lower at $ 27.22 in the regular session on Friday and rose 0.22% in after-hours trading.

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