New York is the most attractive state for Bitcoin miners, but there is a catch

New York is the most attractive state for Bitcoin miners, but there is a catch

Recent research has shown that almost 20% of Bitcoin's hash rate in the United States is in New York, while Kentucky (18.7%), Georgia (17.3%) and Texas (14%) are close behind.

New York leads the way

The financing and advisory company focused on digital asset mining and staking – Foundry USA – led a survey to find out which states American Bitcoin miners most prefer as the location of their efforts. Nic Carter - co-founder of Castle Island Ventures, who presented Foundry's data - said the research is the first of its kind:

"This is the first time we've had insight into the situation of miners at the state level, unless you wanted to dig through all the public records and try to find out that way. This is a much more efficient way to find out where mining is happening in America."

However, Foundry does not include all US-based mining operations in its database. This is the example of Riot Blockchain, one of the largest companies in its industry with a significant presence in Texas. If it had been part of the survey, the Lone Star State could have had a higher percentage, Carter explained. Riot was not part of the research because it does not use Foundry, the report said.

Nic Carter, Yahoo Finance

It is worth noting that most of the states at the top of the statistics are known as epicenters of renewable energy. New York generates much of its electricity from hydroelectric plants. It also has a relatively cool climate. Therefore, it is no wonder that it has caught the attention of almost 20% of Bitcoin miners.

Carter pointed out that BTC mining in New York state has such a low carbon intensity that a ban would actually be more environmentally damaging:

"Bitcoin mining in New York actually has a very low carbon intensity given its hydropower, and if New York were to ban Bitcoin in the state, it would likely increase the carbon intensity of the Bitcoin network overall. It would be the complete opposite of what they wanted."

According to a recent Test report, the United States is not responsible for more than 35% of the global BTC hash rate after China pushed all miners out of its borders.

Shouldn’t Texas be higher in the rankings?

Texas may have placed fourth in the poll, but many experts say it deserves the top spot. Crypto-friendly politicians, a large part of the population in favor of Bitcoin, low energy prices, wind power: the Lone Star State has it all.

Some of the leading names in the cryptocurrency mining industry operate in Texas. This is the case with those mentioned above Riot Blockchain, which has a 100-acre site in Rockdale.

HowCryptoPotatorecently reported, China's total ban on digital assets prompted many local miners to move their operations overseas, with Texas being the most tempting option.

Alex Brammer – an executive at cryptocurrency mining pool Luxor Mining – pointed to West Texas as the most suitable mining area. The combination of a lot of capital, a considerable land mass and low electricity prices is what catapults it to the top:

“In West Texas, the cost of electricity simply can’t be beat, and when you combine that with a competent energy management company that can manage your demand response programs, it’s unbeatable almost anywhere in the world.”

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