Pierre Rochard, vice president of research at Riot Platforms, testified yesterday that Bitcoin is positive for the state.
The Senate Business and Commerce Committee heard testimony on a Texas bill that would ban flexible charging agreements between bitcoin miners and energy providers yesterday.
The invoice it is intended to prohibit arrangements in which power providers like ERCOT would pay bitcoin mining operators to shut down their facilities, effectively freeing up excess power for use during emergencies or periods of high demand.
Bitcoin Policy Institute Lead researcher Natalie Smolenski notes in a tweet that the bill also seeks to “prohibit tax cuts for miners in Texas because ‘mining is already projected to grow in the state.'”
riot platforms Research Vice President Pierre Rochard testified that the company’s presence in Texas has beneficial impacts on rural communities, employment and energy production.
“Bitcoin miners are the number one employer in Rockdale. Bitcoin miners are also the number one contributor to Rockdale ISD. Bitcoin mining is good for rural education.”
“Even if you are skeptical of bitcoin, these reductions have been very effective in revitalizing rural communities.”
Supporters of the bill, such as its sponsor, State Sen. Lois Kolkhorst, cite the state’s goal of increasing power production and say the mining industry’s use of this power and subsequent shutdown agreements with ERCOT “It’s part of their business model.”
But as Bitcoin Magazine’s Mark Goodwin points out, the power production curves of renewables, representing a increasing proportion of state power will potentially improve, not degrade, with the use of bitcoin mining.
