As of yesterday’s City Council vote, Fort Worth is the first city in the US to mine Bitcoin. Here’s a breakdown of what that means.
What is Bitcoin?
Bitcoin is a type of digital currency that operates without a central bank + can be sent from user to user. You may have heard of bitcoin when it rose in popularity due to its high price swings and surging value — with an all-time high of $68,790 in November 2021 — since its creation in 2009.
Mining is the creation of new bitcoins, during which sophisticated hardware solves a complex computational math problem. The first computer that solves the problem receives the new bitcoin as a reward, and the process repeats.
How will it work?
The city launched three S9 bitcoin mining machines in the Information Technology Solutions Department Data Center at City Hall. The machines, which were donated by the Texas Blockchain Council, will run 24/7 on a private network.
How much will it cost?
Bitcoin mining is part of a small pilot program that is expected to use the same amount of energy as running a household vacuum cleaner. The newly mined bitcoin will offset the cost of the program.
What does this mean for Fort Worth?
The pilot program will position Fort Worth to be the bitcoin mining capital of Texas, the state already leading the world in cryptocurrency mining. Mayor Mattie Parker hopes this will propel the city forward as a tech-friendly hub as it continues to grow and innovate.
“Fort Worth is where the future begins,” Mayor Parker said. “These small but powerful machines mark Fort Worth’s larger commitment to becoming a leading hub for technology and innovation.”