Why one small Washington town has seen so many bitcoin miners move in
A Bitcoin mining boom is taking place the middle of nowhere in the US, specifically in Wenatchee, a rural town in Washington state. It has become the Bitcoin mining center in the United States.
Right now, there are over 12 crypto mining companies in Wenatchee and the reason why this is happening, is because electricity in Washington state is so cheap. The average electricity price per kilowatt in Washington State is about 4 cents, when the national average is 7 cents and some states are even higher.
The Columbia River, which it’s located near Wenatchee, generates cheap and affordable hydroelectric power. The crypto mining guys are flocking there, because it’s cheap and so they can make more money.
One of the 12 Bitcoin mining companies, is called Salcido Group and it’s currently mining five to seven Bitcoins per day. They’re looking to mine 50 bitcoins per day by this coming July.
This is an important development, because China is now thinking about shutting down Bitcoin miners. The reason the Chinese government is considering to shutdown miners, is because of the excessive electricity consumption and the financial risk.
China has the largest Bitcoin mining community. That’s where most of Bitcoins are mined today. Two of China’s largest Bitcoin mining operations are looking to set up shop elsewhere in the world, as the China expands its ban on cryptocurrencies to mining operations. Bitmain, that runs two exchanges, has set up a regional office in Singapore, as well as mining operations in the US and Canada.
China has banned Initial Coin Offerings (ICOs), last September, as well as trading of the digital assets on local exchanges. Initially the country was very popular for cryptocurrency mining ops, because of cheap energy costs. But this shift in policy could have huge effect on the Bitcoin mining landscape, which is already struggling with high transaction times, which sometimes can even take more than 10 minutes.
When Bitcoin mining began, regular off-the-shelf PCs were fast enough to generate Bitcoins. That’s the way the system was set up, as it was easier to mine in the beginning, and harder to mine as more Bitcoins are generated. Over the last few years, miners had to move on to faster hardware in order to keep generating new Bitcoins. Today, application-specific integrated circuits (ASIC) are being used. New faster hardware is being created by various mining start-ups and the price tag for a full mining rig and cost around $12,000.
For those of you that are thinking about mining and don’t want to make investments in hardware, you might want to consider Bitcoin cloud mining. Services like Genesisor HashFlare, that let you mine Bitcoin, Ethereum, ZCash, Dash and Monero really cheap.
Bitcoin mining is kind of the modern-day gold rush with, just like a century ago, when people were moving out to California. It’s great to hear that this is happening in the US. Mining operations like this can boost the local economy of small towns and it can help government warm up to Bitcoin and crypto.
If China goes ahead and bans crypto mining, this could really be a big opportunity for the US. Companies like the Salcido Group could find spots within the US with cheap electricity and build an environment that helps economies of small communities.