The city of Fort Worth, Texas is getting into the bitcoin mining business in an effort to position itself as a leader in the crypto industry. The city will conduct a six-month trial period to gain industry knowledge and position itself as a major mining center.
First U.S. City to Mine Bitcoins
Fort Worth, Texas’ fifth-largest city, will be the first in the U.S. to begin mining bitcoin (BTC) as part of a new pilot project. The city council unanimously authorized the plan on Tuesday as part of a bigger package of crypto-friendly activities.
The city has teamed with the Texas Blockchain Council (TBC), a proponent of blockchain technology in the state, for the program. TBC donated three Bitmain Antminer S9 bitcoin mining rigs worth $2,100 to the city.
Fort Worth will house the rigs in a climate-controlled environment within the Information Technology Solutions Department’s Data Center at Fort Worth City Hall, where they will be connected through a private network to avoid security risks.
“These small but powerful machines mark Fort Worth’s larger commitment to becoming a leading hub for technology and innovation,” said Mayor Mattie Parker, who led the project.
“We have to be on the forefront of what’s possible, especially when it comes to cryptocurrency and innovation across this country,” Parker added, further asserting that Fort Worth will be the first city in the United States to mine bitcoins.
Fort Worth has been designated a “crypto-friendly” city in an effort to foster the development of the crypto sector.
Bitmain’s Antminer S9 mining rigs are one of the first and most affordable bitcoin mining rigs available and are particularly popular with beginning miners. S19 versions are currently more common among more experienced and professional miners.
Fort Worth intends to examine the mining process through this pilot program and will conduct another evaluation in six months. Luxor Technologies, a provider of cryptocurrency software and services, and Rhodium Enterprises, a bitcoin miner, are offering strategic direction for the city’s trial initiative.
“By starting small to learn as they go, Fort Worth is positioning itself to be the bitcoin mining capital of Texas,” said president and founder of the Texas Blockchain Council Lee Bratcher.
The donation is conditional on the equipment being used indefinitely. The resolution specifies that “if the city permanently terminates its use of the machines for mining Bitcoin” then they would have to be returned.
Growing Regulation in Crypto Mining
Following China’s sweeping ban on the crypto sector last year, the United States, notably Texas, has emerged as the dominating center for miners, owing to the low cost of electricity and mining-friendly state legislation.
At a time when both global and other state-level officials are pressing for greater rules for bitcoin miners, Fort Worth’s decision is likely to bolster the state’s narrative of being a bitcoin-friendly jurisdiction even more.
Latest in line is a controversial bill being considered by New York lawmakers, which would put an end to certain proof of work crypto mining operations in the Empire State for a period of two years if passed.
Sourced from crypto.news.
Written by Rony Roy on 2022-04-27 06:00:00.
