By Alicia Maher
Lead Off
How many people can clearly imagine their countries declaring cryptocurrencies as a legal means of exchange? Yet, a country like El Salvador has done it. Now it looks like Arizona and Texas are getting ready to make cryptocurrencies legal tender in the states. Are they going to get through with it? Here is a piece to assess a few points in the direction of that achievement with analysts that have lent their voice to it.
Chris MacDonald, Travis Hoium, and Jon Quast are contributors who have a few recent and good news to share about Arizona and Texas aiming to become big-time players in the cryptocurrency market.
The Analysts
In the view of Chris MacDonald, Elizabeth Warren sought quite interesting information a few weeks back. It is more interesting to find out that even some other regulators were equally seeking the same information. This widely sought information includes knowledge about the mining procedure of cryptocurrencies, activities of crypto miners, the amount of energy required for crypto mining, how the energy consumption of crypto mining affect the energy grid of the country, and further information about regulating crypto activities in various parts of the world.
At this rate, MacDonald said, the proposal being considered by Arizona and Texas gets more interesting by the day. He said that some politicians are beginning to view it as an opportunity and a game to get some votes in. the important questions to ask now will be; what do the people in Arizona and Texas want? Will they be more interested in getting mining activities up and running or they are more interested in having a stable power supply?
Other questions MacDonald raised include; how the mining activities will benefit the government, what the risks are, and how is it going to be of any help to the government?
From a regulator’s point of view or from that of a politician, MacDonald said that the issue of crypto assets and currencies is always very interesting to discuss. When it comes to making cryptocurrencies legal tender, everyone will have to wait and see. People in both Arizona and Texas are expecting government decisions.
For Travis Hoium, on the other hand, it is simply a matter of states trying to set themselves as different from others. He used Miami as an example with its MiamiCoin by saying that the city was attempting to be the central point of crypto and space of development.
He stated further that many countries and cities around the world have been trying to become the center of crypto activity and now it is simply the turn of Arizona and Texas to throw in their caps.
For his part, Jon Quast said that the good news is first that the governor of Texas, Greg Abbott, is pro-Bitcoin and he is working hard to draw people to Texas for mining. Part of the incentives the Abbott administration is said to offer prospective Bitcoin miners in Texas is a low cost of power.
It should be noted there are power issues in Texas but it has been worked on.