Foreign media: Montana government funds Bitcoin mining companies

According to foreign media trustnodes.com, after the price of Bitcoin rose to an all-time high of $3,000, Montana Governor Steve Bullock announced a $416,000 grant to the Bitcoin Project Spokane to help it expand. The governor said:

“The funds will be used to purchase equipment, machines, software and pay employees’ salaries. The Spokane project is a data center that provides blockchain security services for the Bitcoin network.”

James Grunke, president and CEO of the Missoula Economic Partnership, told local media, "The Spokane project is on its way to becoming the largest data center in North America, with 55,000 servers, up from 12,000 now, which is exciting," he said.

If the news is true, this may be the first example of a government directly investing in Bitcoin mining, which means a change in the government's attitude and shows that the Bitcoin market has begun to take shape.

Questions from netizens

However, there are some doubts about this news itself. Some netizens said that according to reports, the company will employ 65 people, and the mining business may not be able to support such a large group of people. The company itself did not claim to be a mining company, but called itself a "blockchain security service provider." Therefore, the netizen suspected that the news was not true.

Fierce competition in the Bitcoin mining industry

The price of Bitcoin has risen from approximately $1,000 at the beginning of the year to a peak of $3,000. Its current market price is approximately $2,700, and its total market value is close to $50 billion.

As the price of Bitcoin has risen, the rewards for mining Bitcoin have also increased. The entire Bitcoin mining network is earning about $7 million a day, nearly half of which comes from transaction fees.

This means that there is a $2.5 billion pie to be shared each year in this market. However, Bitcoin mining is a very competitive industry, and as new hardware is added, old hardware quickly becomes obsolete, and energy costs are also considerable.

Therefore, even if the news is true, the competitiveness of the Spokane project against Chinese mines with lower energy and equipment costs is questionable.

What do you think?