The recent news story about the US government suggesting banning crypto mining has been making rounds in the crypto community with many members saying that it should never happen. However, the issue is a little bit more complex than the US senators waging war against crypto. Many states are already heavily invested in mining and will not go against what they plan to do. Mining companies bring value and jobs to their economies, meaning conditions are happy.
While some states like Texas are struggling to produce enough electricity to allow miners to deploy as much computational power as they planned to, some states have excess electricity that can be used for mining purposes. On the other hand, we must remember that one of the key issues in energy production is providing stability to the grid by improving the infrastructure.
What the article also points out is that the government is not happy with the environmental impact but sees the crypto industry as a crucial motivational charge for the whole energy sector to focus more on introducing greener electricity technology and utilizing any excess energy by selling it to crypto miners.
Texas is struggling during periods when the demand for energy skyrockets due to unforeseen causes like the recent heat wave and unusually cold winter. However, when the grid becomes a little bit underused, energy-hungry miners can easily buy any excess electricity at a competitive price and provide the state with revenue that could be used on grid improvements allowing for the next cycle of producing, selling, and building more.
Simultaneously, the Chinese ban on mining that was imposed in preparation for the upcoming introduction of the digital Yuan has proven that extreme measures are never a good thing both for the health of the national economy and the future of the crypto industry.
The US government sees a good prospect. It may be able to reduce the environmental impact crypto mining has while improving its infrastructure and building a more robust electric grid. It is a good thing.
