Fort Worth becomes the first U.S. city to mine bitcoin
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Fort Worth has become the first city government in the U.S. to mine bitcoin.
Why it matters: At every level of government, officials are recognizing that cryptocurrency will be an important part of the future. Some, like Fort Worth, are signaling that they are open for business.
Context: This is also another sign that North Texas is quickly becoming a crypto hub.
Catch up quick: Bitcoin "mining" is how new cryptocurrency enters into circulation. It's performed using sophisticated hardware that solves a complex computational math problem. The first computer to find the solution to the problem receives the next block of bitcoins — and the process begins again.
- The process uses a large amount of electricity, which takes a toll on the environment.
What's happening: Fort Worth will join the Luxor Mining Pool, a U.S.-based company, Carlo Capua, deputy chief of staff for the Fort Worth Mayor and Council Office, tells Axios. Luxor has agreed to assist with any maintenance or repairs needed.
- The mining machines will run around the clock in a climate-controlled data center at Fort Worth City Hall and housed on a private network to minimize security risk.
- At the conclusion of the six-month pilot program, the city will assess the implications and opportunities for bitcoin in Fort Worth.
- The city plans to convert bitcoin into cash once it reaches a certain threshold and then transfer the funds to the city account. Capua didn't say what that threshold will be.
Details: Because the pilot is small in scale, the proceeds will be minimal.
What they're saying: "With blockchain technology and cryptocurrency revolutionizing the financial landscape, we want to transform Fort Worth into a tech-friendly city," Fort Worth Mayor Mattie Parker said in a statement.
- Parker added, "we're stepping into that world on a small scale while sending a big message — Fort Worth is where the future begins."