Maybe you've invested a few bucks in Bitcoin, Ethereum or another cryptocurrency. Or maybe you've heard these terms, but aren't really sure what they are.
Well, whether you're ready or not, cryptocurrency is here. In North Texas. In fact, experts say by the end of next year, Texas will be home to 20 percent of the world's cryptocurrency mining facilities.
It's no coincidence that data centers are being built in Texas. The state is actively courting them, and there's one very attractive asset in the Lone Star State.
"We have what's called an energy-only market here in ERCOT, which means that you're not paying for the installed capacity of generators and things like that. So you're only paying for the price of energy," Denton Municipal Electric Assistant General Manager Terry Naulty said. "We also have one of the highest market-penetration rates of renewable energy here in Texas, predominantly wind, but solar is catching up. And that wind energy is very, very inexpensive."
Mining cryptocurrency isn't without risks. There are concerns about the state's power grid, which left millions of people without power two years ago, and about the impact on the environment as power needs rise.
Not to mention the risk that cryptocurrency is still a bit of an unknown.
"I think when people think about cryptocurrencies, that is how they view it that, yeah, there are all these initial miscalculations about valuations and there's a bubble and if it bursts, it's going to create short term issues, but in the long term, it's something that is quite spread out and people have seen a lot of value in it," associate professor at the University of Texas' McCombs School of Business Ashish Agarwal said. "So it will take off after that. And with the short term, we can expect some pain there."
To hear the full episode, check out North Texas Wants to Know in the Audacy app or wherever you get your podcasts.
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