4 minute read
Technology: Fort Worth becomes first city government to mine cryptocurrency
By STACI REAFSNYDER | The Municipal
Mattie Parker, mayor of Fort Worth, plugs in the mining machines for the first time on April 26, 2022. These machines will run for six months as part of a pilot program to understand the benefits of crypto mining. (Photo provided by the city of Fort Worth) Fort Worth, Texas, is now home to the first ever municipal crypto mine. Pictured is its skyline. (Shutterstock.com)
Fort Worth, Texas, made history in April as the first city government to mine cryptocurrency.
“This pilot program, launched by the Office of Fort Worth Mayor Mattie Parker and the city of Fort Worth, in partnership with Texas Blockchain Council, recognizes the exponential growth of the blockchain and cryptocurrency industries while advancing Fort Worth’s goal of becoming a leading center of tech and innovation,” the city’s April press release stated.
Starting on April 26, the three S9 Bitcoin machines started mining around the clock in a climate-controlled room. The machines are housed on a private network to minimize cybersecurity risks.
According to investopedia.com, the mining of Bitcoin, a cryptocurrency, is a process by which new bitcoin are entered into circulation. To “mine” cryptocurrency, sophisticated software must be used. This hardware solves extremely complex math problems; the first computer to solve the math problem receives the next “block” of bitcoin, and the process starts over. Bitcoin can be turned into feasible money once it is transferred to the owner’s wallet.
“It is also the way the network confirms new transactions and is a critical component of the blockchain ledger’s maintenance and development,” investopedia.com states.
According to the press release, Fort Worth received donations to begin mining from the Texas Blockchain Council, a nonprofit association made
Fort Worth is known for being home to the oldest stock show and rodeo in the country. Now they have made history by becoming the first city to mine cryptocurrencies as a municipality. (Shutterstock.com) Fort Worth also boasts many beautiful sites and amenities; pictured is the Fort Worth Water Gardens, just adjacent to the Fort Worth Convention Center. The urban park features many water features right in the heart of Urbania. (Shutterstock.com)
up of companies and individuals who work in Bitcoin, Bitcoin mining, crypto and blockchain industries. The donations for the equipment were formally accepted by the Fort Worth City Council on April 26. The three machines are a part of a pilot program designed to allow the city to responsibly assess and execute a municipal mining program. City officials close to the project plan to use that time to learn more about the mining process.
“The program will still be evaluated six months from the initial launch. I plan to give a report to the council the month following the conclusion of the pilot program to recap and assess the lessons learned,” Deputy Chief of Staff Carlo Capua said.
According to Capua, the pilot program is a flexible, exploratory program that allows the city to better understand the implications and opportunities of cryptocurrency at no cost to the taxpayers, even with recent fluctuations in the price of Bitcoin.
Based on the number and type of machines being used, the city estimates each will consume the same amount of energy as a household vacuum cleaner. The nominal amount of energy needed for the program is expected to be offset by the value of Bitcoin mined, the press release stated.
The mining of cryptocurrency has become a hot topic. Currently, as far as the federal government is concerned, crypto mining is legal; however, certain municipalities have prohibited it.
The controversy has gained national and international attention. A piece written by Elizabeth Kolbert of The New Yorker magazine in April 2021 highlighted the controversy behind crypto mining and its effect on the environment. In certain countries, such as China, Egypt and Tunisia, the practice of mining has been banned.
“Monitoring the energy implications of Bitcoin mining is an important piece of the pilot program, which is in part why the program is small in scale—to ensure a nominal impact on the city’s energy usage,” Capua said. “It’s worth noting that last month the Texas Blockchain Council exchanged the program’s three older mining machines with one new s19 The crypto machines will be housed on a private network to minimize cybersecurity risks and hacks. (Photo provided by the city of Fort Worth)
Bitcoin mining rig, a significant upgrade. The s19 machine consumes 18% less energy and mines 147% more Bitcoin than the three older machines combined.”
The crypto pilot program is a part of the city’s larger growth plan. It builds on the recent efforts of a partnership with Texas A&M University System’s planned Research and Innovation Center in downtown Fort Worth.
Adopted by the city council, the Economic Development Strategic Plan of Fort Worth has set a next-level strategy of encouraging innovation and creativity while building an attractive environment for talented individuals and businesses. The strategy also maintains a forward-looking organizational structure.
