Cryptocurrencies are not for those who cannot afford significant losses. Cryptocurrencies can be very volatile, with the value of bitcoin declining sharply from its high last fall and others following suit. However, though the revolutionary technology behind cryptocurrencies may change, they are here to stay. This is why many states are vying to establish themselves as crypto-friendly.
The United States has been a leader in financial innovation, and it continues to do so with the rise of cryptocurrency. However, some states are leading America in creating a crypto economy. At the same time, others have not taken any action at all. The lack of regulation can be problematic for bettors. Bettors want to place bets on cryptocurrency but cannot do so because there is no legal framework for them.
Here are 5 of the states creating crypto economy.
The Virginia Bureau of Financial Institutions has been careful not to overregulate cryptocurrency while keeping residents informed of the risks involved. In April, Republican Gov. Glenn Youngkin signed a bill allowing banks to hold their customers’ crypto assets as long as they have proper risk management tools. Their mining capacity is No. 15 while Electricity cost is No. 15 and Regulation is No. 6
Washington state has become a popular destination for cryptocurrency miners due to the low cost of electricity and a robust tech ecosystem. Earlier this year, Governor Jay Inslee signed a bill establishing the Washington State Blockchain Work Group, advancing the new technology and establishing partnerships between the state and industry. The mining capacity is No. 8 whereas Electricity cost: No. 6 and Regulation: No. 21 (tie).
The Peace Garden State may be known for its abundant natural resources, but the area is quickly gaining a reputation as a fertile ground for cryptocurrencies. Recently, Bitzero has announced that it will build its North American headquarters in North Dakota and aims to build an environmentally friendly bitcoin mining operation. Its mining capacity is No. 18. Electricity cost: No. 4 and Regulation: No. 4
Kentucky is leading the way in creating a new type of economy by updating its laws to allow cryptocurrency business. Kentucky is showing how other governments can permit cryptocurrency businesses by signing a series of cryptocurrency tax breaks, including extending electricity incentives that were initially designated for renewable energy to now include those contributing to the growing cryptocurrency business. The Mining capacity is No. 3, the Electricity cost is No. 13, and the Regulation is No. 21 (tie)
The state is known for its low electricity costs, which have yet to translate into a significant influx of mining activity. However, this year the state passed the Digital Assets Act, creating a broad framework for cryptocurrency regulation. Business owners will no longer have to worry about costly securities regulations. The Mining capacity is No. 29, Electricity cost: No. 1, and the Regulation: No. 6
There is still another reason why states are competing to be crypto-friendly. They know that cryptocurrency has the potential to disrupt and revolutionise the way things work. Few investors, however, believe that there will be a large-scale effect on the economy, but it’s certainly possible for states to benefit from it.