Corsicana, Texas is a small town an hour away from Dallas. They kicked off the oil boom in the South 130 years ago, turning their land into a money-making machine. Today, it's the kind of dreary town you don't stop in because there's nothing memorable.
The oil dried up long ago, and so did all the money. Corsicana is trying to recapture the magic they once had, this time with the world's largest bitcoin mine. When I read about what was happening, I knew you'd find it interesting, too.
In Corsicana, the Riot bitcoin facility is under construction on a massive 265-acre site. The operation is still in the planning phase, and Riot is in the middle of negotiating the details with the local government. One thing that's certain at this point? Many residents aren't welcoming the new facility.
To explain why, let's look at how this operation translates into real-life money. Mining a single bitcoin (currently worth more than $66,000) requires a ton of computer power. That's the beauty of these large facilities, where powerful computer chips can work together. They run complex math equations, and whoever owns the computer chip that solves the math equation becomes the owner of that bitcoin.
Since the servers do all the work, the process is pretty passive for those in charge. In essence, bitcoin mines turn raw computing power into real money.
In a town that desperately needs cash, it sounds almost too good to be true. So, what's the catch?
... At least, that's what the Texas Coalition Against Crypto Mining says. The grassroots movement was formed after crypto mining facilities disrupted life in several other Texas towns.
Take Granbury, population 13,000. They learned a little too late bitcoin mines can be very, very loud. Computer components get hot when they're working at max capacity around the clock, and most bitcoin mines use air cooling to keep them running.
The sound of hundreds or even thousands of components running all day can be heard for miles. Imagine how frustrating it must feel to wake up to that day after day.
The process of mining one bitcoin costs 340 kilowatts per hour. That's more power than you and I might use in six months. Many bitcoin mines use energy like coal and natural gas to power their components, too. That's a lot of pollution produced when they're running all day, all night, every single day.
Things get more complicated when you think about the stability of the Texas power grid. The state runs its grid free from federal oversight. In 2021, the grid failed, leaving over 4.5 million homes and businesses without power and heat for weeks.
Now add power-sucking bitcoin mines to that grid. Not only will the mines' 24/7 power consumption drastically impact locals' power bills, but it will also put the whole city's grid at risk.
The coalition fighting all this has organized protests, spoken to officials at city hall and researched every way they could use the law to prevent the Riot facility from opening. It's not all said and done, but the plant is under construction, so it's not looking good for them.
Corsicana isn't the first city in Texas to go toe-to-toe with crypto miners, and they won't be the last. Land is cheap and regulations are scarce. Big operations like these are also why small-time operators are getting out of bitcoin mining. You just can't compete and win.