The enemies of #bitcoin in Texas are also introducing legislation.
TX Senate Bill 1751 seeks to:
1) Prohibit ERCOT from compensating #bitcoin miners for shutting down during demand spikes
2) Ban tax abatements for miners in Texas b/c “mining is already projected to grow in the state” (Sen. Kolkhorst, the bill’s sponsor).
This bills demonstrates how little some lawmakers understand about what makes a business viable.
OF COURSE miners should be compensated for shutting down during demand spikes. They are literally shutting down their entire business. If they weren’t compensated for it, most would have to close operations entirely because they would be forced to lose money every year.
#bitcoin miners shutting down during demand spikes is also a *public service*.
Most businesses don’t or can’t provide this service—demand response. They are being paid for adding value for the Texas grid.
Finally this assumption that “X business is just going to grow automatically, so let’s tax them!” is patently untrue.
#bitcoin mining operates on thin margins. Tax abatements make a real difference about whether they choose to locate in #Texas or elsewhere.
Some legislators would destroy the state’s economic engine & grid resiliency due to magical thinking that economic growth “just happens” & that grid resiliency can be simply demanded instead of architected using the right incentives for energy producers, generators, & consumers.