Texas Trying To Push Crypto Mining Offshore
It appears the anti-crypto sentiment is still pushing forward. The Biden administration is not the only one taking aim at the industry. We now have the Texas legislature turning up the heat.
Before getting into it, we have to realize how quickly the tide can turn. Texas was one of the states that put itself at the forefront when China banned crypto miners. This caused a massive shift of the hash rate around the world. China went from leading the race to giving the title to the United States.
Now, it appears there is a shift in the air, at least in Texas.
Incentives Limited
A bill passed the Texas Senate by a vote of 30-1. It removes incentives for cryptocurrency miners who took advantage of the state rolling out the red carpet to attract them.
Under the proposed legislation, crypto mining firms participating in a program intended to compensate them for load reductions on Texas’ power grid would have their incentives capped at 10%. Certain companies operating data centers would also not receive an abatement on state taxes starting in September 2023.
This has many within the industry up in arms. It is also an interesting twist since Texas went from pro-crypto to questionable.
“Elected officials only know how to use hammers — they don’t know how to be surgeons,” Fred Thiel, CEO of mining firm Marathon Digital Holdings, told Cointelegraph prior to the Senate vote. “They started whacking at crypto, and Bitcoin mining has gotten caught up in the whacking.”
Here we have another example of the lines being drawn. The ebb and flow of the sentiment is going to be ongoing throughout the politicial season.
When dealing with political winds, things can turn quickly. This is something that is likely to go back and forth over the next 18 months, at least in the United States.
Arkansas Taking The Opposite View
This comes on the heels of a bill in Arkansas that is going to give cryptocurrency miners the same rights as data centers. It removes the potential of them facing discriminatory regulation and taxes.
There are similar bills in Mississippi and Missouri.
Politicians love the headlines that come with companies moving into the state and promising jobs. While cryptocurrency mining companies probably do not employ a great number of people, it is an attention getter.
The point here is we have a split that ends up pitting one side against the other. With Texas moving into the questionable category, these three states are affirming themselves as advocates for the industry.
When it comes to the tug-o-war taking place it is good to get as many allies as possible. The key is simply to have them arrive at a stalemate.
The U.S. Is Going To Push Things Offshore
It seems the United States is intent on pushing things offshore.
Overall, this has nothing to do with the long-term success of cryptocurrency and blockchain. This is global in nature, hence is not dependent upon any single country.
Instead, what is taking place, is the opportunity for countries to thrust themselves into the forefront of the new industry. Technology is one of the few ways that a nation's fortunes can be radically changed. Those that jump on the bandwagon will realize great changes.
Of course, the flipside is that countries which miss the opportunity are going to have a tough time playing catchup. My view is the United States will find itself in this situation.
The developed world is going to have a tough time embracing the new technology. It is going to try to hold onto the status quo. Cryptocurrency is a great equalizer. This applies to nations as well as individuals.
The thrust is going to come from those countries that are presently not enjoying the fruits of the global tree. We see this already with people striving to get involved, at least at the population level. People in regions such as Nigeria, Cuba, and Venezuela understand fully the implications of what is taking place here.
One country that changed its tune was Russia. A few years ago, the nation was anti-crypto. While the population of that country is not likely to freely enjoy the benefits of cryptocurrency, the government realizes that it can be an equalizer against the actions of the West.
This is a battle that is going to be waged over many years. The key is for the industry to keep developing. Having allies in the political battle is a help. Of course, at the end of the day, no matter how much governments go after it, things are beyond their reach.
That piece of Satoshi's vision is still in play. Just like the Eurodollar system, cryptocurrency is out of the reach of governments and central banks.
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Good to see some news from the other states but it’s an odd thing for Texas. Texas is in a weird climate right now where a lot of people are fleeing the communists in California and going there, as well bringing their foolish ideas and ideologies that turned California into the cesspool it is now.
This will hopefully swing the other way when the politicians realize how unpopular that stance is with many people.
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Europe has a very hard to handle any energy-intense industries, it'll not come here.
In Nigeria, Our govt with legislations is against crypto and its operations but can't stop its potential because larger number of her citizens are crypto enthusiasts. Its a new technology that have modernized the financial world and against centralized institution.
Fact!
The vision of satoshi over crypto is still unfolding and will changing financial world for good. Its better for adoption now then having anti-crypto sentiments which can't stop its usage.
Fact!
Its not a responsibilities of any single nation for the development and promotion of crypto.
Many other countries like venezuela and europeans, asian countries with enough infrastructural development are really stepping up. Its more on the type of leaders that they have. One thing common about this countries on the front is that their leaders are crypto lover and supports its development for the very good of his/her citizens.
Fact!
Russian leaders always seen things as westernized and wants to avoid it but the early involvement of their friendly nations like China might be the one of the reasons of their change of attitude. Also, their leaders and their people can have a different opinion on this
Fact!
Business thrives in peace and alliance of all sort fosters peaceful conditions for business and other ventures like crypto to prosper. Also, growing hatred over crypto aid to propagates its potential and usage world wide.
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All these back and forth in USA can never stop the growth of crypto and blockchain. the whole world is embracing it.
It's kind of dumb to see them remove the advantages they promised the crypto companies. It doesn't bode well for them to attract more businesses in the future. The businesses will move to where things will be fine but it's a costly process to move their place of operation.
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The truth is that we are the masses and we are more than the government in every way. They cannot tell us what to like and what not to like.
For example, I am from Nigeria and cryptocurrency is not allowed in my country but we always find our way out. There is still a way we can bypass that law.
To always change the rules just from a political move is not always benefit the industry. The crypto sphere will survive and thrive.
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I thought Texas is a libertarian haven. Great to know that the three states are going in the opposite direction.
The idea that "cryptocurrency is a great equalizer" reminds me of the transition from feudalism to capitalism where the social ladder has been opened to many.
I love to see how geopolitics helped Russia realize the potential of cryptocurrency. Glad to be reminded that cryptocurrency is simply following the footstep of the Eurodollar system where governments and central banks are proven impotent.
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I think legislators in most states have no clue what the true potential is for blockchain technology. I think the mainstream media narrative about speculative bubbles and meme coins has been overwhelmingly successful in turning off a lot of would-be potential cryptocurrency adopters and blockchain builders and investors. It's unfortunate that state governments are interfering directly in the private market, but this isn't a new concept. The government always manages to screw good things up, because they desire control and ever more money to finance their personal pet projects.
Hopefully the state of Arkansas wakes up one day and realizes the true potential of blockchain technology - and not just Bitcoin, which has a limited supply, artificially capped by the blockchain coders, and is super volatile, and highly-speculative.
Can you imagine, Arkansas, one of the poorest states in the entire country, and one of the overall poorest populations in all of North America, becoming the hub of blockchain development and cryptocurrency adoption? It's a dream..
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