2 US States Now Support Bitcoin, Will They Buy The Dip?
While the bankruptcy of Genesis Trading is sending renewed (but expectable) shockwaves through the crypto market, two American states have taken important steps to foster Bitcoin. After Texas published a report, New Hampshire is now also on the verge of taking the “orange pill.”
New Hampshire’s Governor Chris Sununu’s “Commission On Cryptocurrencies And Digital Assets,” established by executive order in February 2022, issued its final report yesterday, recommending that the New Hampshire Department of Energy should examine how Bitcoin mining can help stabilize the power grid and build more sustainable generation projects.
In addition, the report also proposes to explore how Bitcoin mining can be integrated into a statewide energy plan. As justification for this recommendation, the Commission argues that the unique, interruptible nature of Bitcoin mining electricity demand can provide a stabilizing benefit to power grids and even encourage the development of new energy resources, including renewable energy.
The Commission recommends that the Governor and the Legislature direct the NH Department of Energy to conduct a public review of how Bitcoin mining operations might be integrated into a statewide energy plan with positive impacts for the electricity system […].
Unlike a hospital, for example, Bitcoin mining can turn its demand on and off much more easily when other demands on the grid are very high. This ability to stabilize the power grid has been used by the state of Texas for quite some time now.
Most recent was the case during the arctic storm over the Christmas holidays when BTC miners in Texas once again voluntarily shut down power to keep the grid running. Just a few days ago, the former head of Texas’ energy grid, Brad Jones called attention to this fact during the Texas Blockchain Summit.
For many years, I’ve been looking for loads of scale that can really respond in a demand responsive way to help to balance our grid. […] But it is here now. […] Bitcoin has the nature of turning down when prices begin to rise in a way that we can give that power to consumers.
₿REAKING: Former leader of Texas’ energy grid, Brad Jones says, “#Bitcoin mining is helping balance our grid and is driving more renewables into our system” pic.twitter.com/kGYwAkOVv8
— Documenting ₿itcoin 📄 (@DocumentingBTC) January 15, 2023
Texas Is “Bitcoin Country”
Remarkably, the New Hampshire report comes just a few weeks after the release of a report titled “Texas Work Group On Blockchain Matters” which is addressed to members of the Texas Legislature. The work group recommends making Bitcoin an approved investment for the state of Texas.
It also calls for the passage of self-custody protection, the provision of tax incentives for local BTC miners that stabilize the grid, and Bitcoin education in schools and colleges. Furthermore, the report calls for legal clarity regarding the operation of a lightning node that does not make a person or institution a money service business.
Texas Government proposes allowing Bitcoin as an authorized investment for the state.
Texas is Bitcoin country 👏
— Dan Held (@danheld) January 18, 2023
So, will the two U.S. states buy BTC? For now, this seems like a pipe dream. But at least in Texas, the state that pioneer Dan Held calls “Bitcoin Country,” there is an initiative to make this possible by law.
Both reports, moreover, are only recommendations for now, concluding that more research on BTC is needed. However, New Hampshire and Texas could lead the adoption of Bitcoin in the U.S. if they decide to follow the recommendations.
At press time, the BTC price was at $20,982, remaining relatively stable below the key resistance zone at $21,500 despite breaking news of Genesis Trading’s bankruptcy filing.
Featured image from Samuel Branch / Unsplash, Chart from TradingView.com
