Blockchain technology has caught the world’s fancy. More and more countries are adopting blockchain even if they are averse to the idea of cryptocurrencies. The application of blockchain technology has manifested its merits in various business categories including the financial technology services, energy sector, supply chain, logistics, etc. No wonder regions across the world are now rolling out incentives to attract blockchain investment and startups with the aim of revitalizing their economies. Take the example of Cleveland city which is rebranding itself as “Blockland” to find favor among the blockchain entrepreneurs. The state of Ohio has allowed the businesses to pay some taxes in cryptocurrencies.
Washington is not behind in luring the blockchain investors as it has a history of attracting innovative and technology-oriented organizations. Just so you know, Washington is also a hub of crypto mining firms, a fact which could curry favor with its aim of attracting blockchain technology firms and give it some advantages compared to other states. To show its intent towards innovation in blockchain technology, Washington has expressed its desire to build a “blockchain innovation campus.”
Washington trump card: Cheap Electricity
Washington has received preference from the crypto mining firms over the other states primarily for one specific reason – affordable electricity. The state has very affordable electricity rates as it has access to electricity generated by the various hydroelectric power plants. This allows the cryptocurrency miners to run their operations at an affordable cost, helping them to stay afloat even during the tough times. The other states cannot match the affordable electricity rates of Washington and hence, lost to it in attracting crypto miners.
Crypto market and its future
Due to the bear market effect in 2018, many crypto mining firms have lost faith in Bitcoin and other cryptocurrencies. However, there are still few proponents who believe that the sector will overcome this difficult phase and the things will return to normal. One such believer is Lisa Parks, executive director, Port of Douglas County who says that the story of cryptocurrency is more than just boom and bust. The county has offered $50,000 to help build the new blockchain innovation campus.
All of these efforts point towards a promising future for blockchain technology in Washington although there are many blockchain companies which have wound down their operations in the same state. GigaWatt is one of the most talked about cases which has applied for the bankruptcy in November last year as it owes more than $300,000 to its creditors. However, there are others who are seeing the bright future of blockchain. Bitmain, the world’s largest Bitcoin miner, opened a humongous facility for mining worth $20 million in the Douglas County in the same month of November when GigaWatt filed for the bankruptcy. The Bitmain’s mining facility is so large that the electricity used in the operations could power thousands of the homes in the county.