Infrastructure

Will Abbott Hit The Jackpot With Bitcoin?

Texas Governor Greg Abbott has always been a steady advocate of Bitcoin mining and smiling at the thought of Texas being known as “Bitcoin country.” 

Since last fall, he has turned to cryptocurrency deal makers in Austin to save Texas’ electricity grid. The idea is that electricity-hungry Bitcoin miners will help alleviate the stress of the state’s power grid. The assumption was that since the miner’s computer arrays would demand so much electricity someone would eventually come along to build more power plants. 

The idea is that if the grid starts to fail again – which two arctic blasts in January already exposed continued vulnerabilities when they shut down gas production – miners could quickly shut down to conserve energy for homes and businesses.

However, there is no guarantee that anyone will build more generators or that Bitcoin miners will shut down when they are asked. 

Ben Hertz-Shargel, global head of energy consultant Wood Mackenzie’s Grid Edge unit, believes depending on Bitcoin miners is risky. As crisis looms, miners could vie for power with families and businesses. “At those times, Bitcoin mining would be competing with basic core societal needs like heating or cooling homes or the functioning of hospitals and nursing homes,” Hertz-Shargel said, as reported by Bloomberg. 

Doug Lewin, an energy consultant in Austin, believes there needs to be a thoughtful approach to bringing Bitcoin miners onto the system.

He said regulators need to require miners to shut down during a crisis, instead of making it voluntary. “We’ve got to make sure that if we’re getting close to scarcity, people aren’t mining Bitcoins anymore.”

It appears that Abbott is gambling his political fortune on getting through the winter with Bitcoin miners. 

According to Bloomberg, the grid is one of the governor’s few weak flanks: The most recent University of Texas/Texas Tribune poll, from October, showed that 60% of Texans disapprove of how state leaders have handled the reliability of the grid. 

Abbott is all-in and isn’t alone. State leaders,  from Austin Mayor Steve Adler on the left to conservative Senator Ted Cruz, are also pushing Texas as a crypto paradise. 

“In five years, I expect to see a dramatically different terrain with Bitcoin mining playing a significant role as strengthening and hardening the resiliency of the grid,” Sen. Cruz said.

RA Staff

Written by RA News staff.

Recent Posts

Texas’ Opioid Fight Faces Uncertainty as COVID-Era Funding Ends

Texas’ no-cost naloxone distribution system faces mounting…

8 hours ago

Cruz Proposes Anti-Censorship Bill

Sen. Ted Cruz is preparing to introduce…

8 hours ago

$50 Million for Administration? Odyssey Chosen to Run Texas School Voucher Program

Texas Comptroller Kelly Hancock announced Monday that…

1 day ago

Wesley Hunt Enters Texas GOP Senate Race And Shakes Up 2026 Primary

Texas Republican Congressman Wesley Hunt announced Monday…

1 day ago

Trey Trainor Launches Bid for Chip Roy’s Congressional Seat

Trey Trainor, a longtime ally of President…

1 day ago

Texas Democrats Focus on Winning Back Working-Class Voters

As Texas Democrats prepare for the 2026…

2 days ago

This website uses cookies.