Crypto mining company Blockcap, which recently announced it is setting up new offices in Austin, says Texas could become an attractive region for the industry.
In an exclusive interview with Cointelegraph, Blockcap founder and CEO Darin Feinstein said the company had chosen Texas as its headquarters based on the potential hiring pool and regulatory environment. According to Feinstein, blockchain companies operating in the United States – and Texas in particular – may face less geopolitical risk than those in China and other countries.
“Texas is certainly a place that we see protecting the privacy elements and some of the other aspects of blockchain technology that some states and some governments around the world don’t like.”
The Blockcap director said parts of China with a high concentration of Bitcoin (BTC) miners like Xinjiang do not “protect private property” and can encourage businesses to shop elsewhere. This week, the hash power of the top Bitcoin mining pools in the China region declined as a result of a regional blackout allegedly aimed at allowing security inspections, implying that the Chinese government could have some significant control about the bitcoin hash rate.
In the United States, however, Feinstein said the support of private companies coupled with the approval of lawmakers such as Texas Governor Greg Abbott makes the state “a really good hub” for crypto and blockchain. Last month, Abbott tweeted he backed legislation to better adapt commercial law for blockchain innovation and digital asset regulation.
Alternative locations in the US, such as Wyoming, have “really good blockchain laws”, according to Blockcap’s founder. However, he said Elon Musk’s decision to set up a Tesla Gigafactory – as well as his personal home – in Texas may be a better indication of the state’s growth and the opportunity to find qualified new hires.
“We are all in the first inning of a very long game,” said Feinstein. “The final regulatory decisions will take place in the next decade and the jurisdictions that want to vigorously advance this technology are jurisdictions we are interested in being a part of.”
Blockcap now operates more than 12,000 mining platforms generating approximately 7.5 BTC daily, and the company aims to bring an additional 43,000 miners online by 2022. Along with Riot Blockchain – which also plans to establish itself in Texas – the companies are two of the largest crypto mining operations in the United States.