Bitcoin Farms

Bitcoin farms are they come into the Metroplex, are they coming more to America? Definitely. We’re going to discuss that and more and discuss how that has anything to do with real estate. So what we’ll do is we’ll give a quick rundown of what we’re going to talk about with Shana Acquisto. She’s a luxury real estate broker. She has things that she does every single day related to real estate continuing to get better just for you out there.

And I try to bring new and unique topics for you so that you can have something to kind of think about and see where it could be headed. You do a great job. All right. So what we have is an article for you.

We’re going to go ahead and split screen and share that off. And we’re going to talk about how the US is becoming the new Bitcoin mining hub. OK, so CNBC brought us this article and we’re going to discuss how China, in their crackdown on what they’re doing, opens the door for this and how half a million rigs need to go somewhere and they need to figure out where those need to go.

So they have all these mining rigs and they need to go somewhere. So let’s go ahead and take a look here. CNBC is like, hey, all these rigs are going somewhere. There’s going to be a ton of Bitcoin mining going on and trying China crack down on it. So China’s not allowing that anymore and they’re going somewhere and this is going to happen.

Wow. Yeah, I personally find Bitcoin farming a little confusing.

Ok, well, let’s go ahead and come on back and just have a quick discussion on this first and maybe we’ll break it down simply. That would be great. All right. So what Bitcoin is, is Bitcoin is a cryptocurrency. It’s an alternate currency similar to the U.S. dollar. It is used to buy and sell things OK, and it has to be mined similar to gold. So there has to be effort and energy put in so that you can mine and extract it and harvest it, so to speak. Right. OK, so to do that in today’s world, what gets used is energy and money.

OK, OK, so the money is converted into, into computers so that they use the processing power of the computer to mine to handle these transactions, these codes and to process it. And it gets continually harder all the time. So they need more and more and more. So essentially it becomes very energy intensive and capital intensive in the money is converted to computers and then the computers use the power. And then we create I.

It’s hard it’s really hard to understand and, you know, for the most part, my my personal belief is used by criminal organizations to launder money and move it all across the world and to move money from places where it shouldn’t be to others. So that’s the big reason why China is cracking down on it, because the Chinese people that want to get money out of their country are taking cash, converting it to computers that which they can buy legally, then converting the computers and energy into cryptocurrency.

Then the cryptocurrency is now not taxed and it can go anywhere around the world nearly instantaneously. So that’s the type of thing that drug dealers like that people in in countries really want to get the money out of it easily. They want to be doing so.

Why would we want it here?

Well, so the reason that our currency. Why do we want it here? Well, I’m not positive we want it. So that’s the first thing. But it is coming and it’s one of those things that you kind of can’t stop. So the places where it has to be is where power is affordable because that’s number one input and where it’s probably colder. Mm hmm. So some really good cryptocurrency places are like Iceland, for example. So Iceland has cold weather and it has geothermal electricity that’s very affordable.

So when you use both of those, then you have a competitive advantage to be able to do that. And if it’s coming to the Metroplex, I’m not positive. Right. But any time that you want to move money or convert money or do something and take advantage of extra space that somebody has. Right. Or you have computers that are unused or you have extra power that you’re able to generate, then this becomes an option. OK, so maybe if you have something going on or you have a subsidy or you have too much solar power or you have a way that you can get rid of heat very easily if it’s cold outside.

Right, then you can go ahead and do that. So is it coming to the Metroplex? I’m not positive if it’s coming here, but it is something that more of it will be coming. Not all of it’s going to come here. Right. But when it does come, what it does do is it affects how much power is being used and often puts a real tax on the municipal power in places. So people start bringing it here.

It would probably cripple our our grid, which is already in trouble here in Texas. So we might want to keep that one away. But it’s going to land somewhere. And so kind of be on the lookout for it and kind of know what the inputs are. So if you have a client that’s interested in it, then the inputs are power and then obviously the computer resources so that they can be able to get them. OK, so we’ll go back to the article and kind of go over this here.

And miners, all around the world are moving, moving these computers. And for the last 18 months, there’s been a serious, serious growth in the mining infrastructure here in the US. And so it’s been up considerably.

We actually know some people. Yeah, all right. OK, and there’s been a massive mining exodus out of China and the world’s the biggest ones are dropping off line and then they’re moving to other places. So they will be moving. And this is something that you can legally do here in the United States.

So that is an option. And the new places are somewhere in the United States where it’s going to be, where it’s going to become legal. So let’s figure out how they’re going to tax and if they’re going to tax. And there’s a lot of questions around this.

Whenever you start doing these types of things, you become worried about new regulations, about changing things dramatically and how it all works. So just something to be a little aware. Yeah, because with that much movement going on with these with any type of instability.

So if you have maybe a new a new light that’s opening and you’re going to have power from that from hydro or you have something where it’s extremely affordable and the power prices are too cheap because of deregulation or the opportunity to choose, then that does become quite a quite a thing. And this is big business.

So it’s definitely a big business. It doesn’t have a lot of employees, but they do generate a lot of income and they do mine quite a bit. So if there’s, you know, illicit money that has to go back south of the border for drugs or anything like that. And this is kind of like a great way to go ahead and do that.

I mean, I see with all the. Issues that we’re having with power and with that, you know, how close we are to the border, that we could see this.

Yeah, we definitely good. All right. So there’s that topic. Not totally one hundred percent real estate related, but just kind of keeping up to date on current events and tying it back into real estate and the power grid and other potential problems that it could be.

Well, if you have someone that says, hey, I want to buy this home, I’m going to use. Cryptocurrency, hmm. We need to talk.

Yeah, you’ve had people. We sure have. All right. And we’ll see if the title companies take it and if it’s currency and what that actually means. But transactions going on, stage transactions do get done using cryptocurrency for sure.

Episode Links

Shana Acquisto , luxury real estate broker , article, US is becoming the new Bitcoin mining hub

Episode Recorded Live on YouTube 7.27.21

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