Miami Is Hoping to Entice Chinese Bitcoin Miners to Move Their Base to Florida
The current Mayor of the city of Miami is working to reduce the cost of electricity in the state. By doing so, Mayor Suarez is hoping that the move might entice Bitcoin miners who no longer welcome in China.
The mayor has said the doors are open to Bitcoin miners from China who are desperately scrambling to find a new base of operation.
Mining is the process that creates new Bitcoins as well as updating the ledger of all transactions involving existing tokens. It is estimated that at least half of all miners are based in China, but that is about to change. A mass exodus of miners is underway, however, which direction they are heading is not yet clear.
According to mayor Suarez, his office has yet to receive any contact from Chinese miners. The mayor is looking to attract this diaspora by promoting the fact the city of Miami has essentially an unlimited supply of inexpensive nuclear energy readily available. The mayor was quoted as saying, “We want to compete, we are currently in discussions with numerous companies.” The mayor went on to say. “We want you to relocate to Miami.”
Out Comes the Red Carpet
Mining is not “location dependent.” The only criteria are having a mining rig and a great connection to the internet. The variable is the cost of energy. What Bitcoin miners look for more than anything is a location with the cheapest possible source of electricity to drive the profit made from their endeavor.
Mayor Suarez is well known for being among the most crypto-friendly chief executives in the country. He is actively promoting Miami as a low-cost venue. The mayor has long been a believer in crypto. He made a move into investing in Bitcoin and Ethereum when he saw the government in Washington pass a $1.9 trillion rescue plan for the country.
He has long emphasized the fact that Miami, due to its reliance on nuclear energy, is in a position to offer more than enough clean, inexpensive power.
A drive of less than one hour from Miami City Hall gets one to the Turkey Point Nuclear Power Plant. According to data published by the EIA (Energy Information Administration), the average cost per kilowatt-hour of electricity is less than 11 cents, whereas the national average cost is in excess of 13 cents per kWh.
After natural gas, nuclear energy is the largest power generator. Suarez is currently holding talks with Florida Power and Light Co., hoping to determine how to further reduce the price of energy. The mayor said there is a full understanding of the importance of power prices, and they are working with the utility on that.
The mayor is not only focused on the cost of power, he is considering other incentives to add to the mix, including the creation of enterprise zones established exclusively for crypto mining activities.
Enterprise zones are areas where locators can expect tax concessions, various incentives focused on infrastructure, and scaled-back regulations. It is hoped that incentives such as these are what is needed to encourage investment, and create employment.
The Pollution Debate
The mayor of Miami is not the only one championing the benefits of nuclear power.
The U.S. Federal Government suggests nuclear energy is a clean energy source that creates zero emissions. Bill Gates, long an advocate of clean nuclear energy believes that it may soon become politically acceptable again. Gates went on to say that new and creative innovations within the sector are making the generation of energy via nuclear means is safer and less costly.
Bitcoin vs. the Establishment
Rather than simply focus on attracting Bitcoin miners, Miami sees itself as a destination for professionals involved in the crypto space.
To draw these people, the mayor is advocating certain policies. He would like to see city employees paid in crypto and residents being able to pay their taxes using crypto. The city is giving serious consideration to holding crypto as an asset on the balance sheet. Suarez says they have received legal clearance to proceed.