FAQ
What is Bitcoin?
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Bitcoin is a decentralized virtual currency (cryptocurrency) that operates as a commodity that allows users to buy, sell and exchange goods and services without a bank.
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It’s similar to online cash: There are no physical coins or notes.
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Unlike flat or traditional currency, Bitcoin is created, distributed, traded and stored using a decentralized ledger system known as the Blockchain
What is the Blockchain?
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The Blockchain is a virtual ledger that stores data in blocks linked together.
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The information on the blockchain cannot be altered once created and is visible to all, making it a transparent data storage system.
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The name comes from the way the blocks are chained together in chronological order.
How is Bitcoin Mined?
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Bitcoin mining is like a competitive puzzle-solving game where miners use powerful computers to validate and add transactions to the Bitcoin ledger.
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The first miner to solve the problem and add the block to the Blockchain earns newly created Bitcoins and transaction fees.
Who regulates Bitcoin?
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Bitcoin is a decentralized digital currency, which means it is not regulated by any single government or central bank in the same way that traditional currencies are.
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U.S. government agencies treat Bitcoin as both a digital commodity and a virtual currency.
How is Bitcoin Mining related to the Grid?
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Like many businesses, Bitcoin miners rely on electricity to power their operations.
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Currently, Riot is a large flexible load on the Texas Grid operated by ERCOT.
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The company has long-term power purchase agreements, which allow it to mine Bitcoin, or to sell energy back to the market.
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Riot also participates in ERCOT demand response programs to help stabilize the grid during times of high demand.
We are water conscious
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Riot’s immersion cooling system does not require freshwater.
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Our Corsicana site has a dedicated retention pond that provides much of the water needed for operations.
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Water is recirculated.
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For context, agriculture uses 70% of the world’s water, and U.S. golf courses alone use double the water of global Bitcoin mining.
Noise Mitigation
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Riot has taken steps to ensure the least amount of noise pollution as possible.
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Through a unique immersion technique, Riot’s systems reduce noise.
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Overall, the sound coming from the facility will be that of an air conditioner and should not impact the lives of Corsicana residents.
Riot won't drive up your energy bill
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Riot can shut off operations during periods of high demand.
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Riot, like hundreds of other companies, participates in the Electric Reliability Council of Texas (ERCOT), compensating the organization for lost business while offline.
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This program has no impact on residents or their electricity pricing.
We are pro-freedom
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The mission of Bitcoin is to empower individuals to be their own bank and have easy access to money that can’t be inflated away.
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Bitcoin offers an alternative to dollar debasement, which is caused by money printing and reckless spending in Congress.
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Bitcoin also stands in opposition to CBDCs — a form of digital currency that would allow governments to surveil spending and even control bank accounts.
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Much of the opposition to Bitcoin mining in Texas is supported by pro-CBDC organizations and politicians.