Another cryptocurrency mining operation has set foot in the upstate.
Litchain Corp. announced that it is investing $80 million and leasing part of the warehouse property from Gaffney Public Works on SC 105 for its operation.
Founder and CEO Tony Tate said the site will house up to 20 modular data centers that house the Bitcoin mining computers. He said the business will create 25 to 30 jobs, locally, that pay $60,000 and up.
Last fall, Greenidge Generation Holdings of Dresden, New York, announced that it would use part of the former LSC printing plant in Spartanburg County to start its crypto-mining operation.
Last month, former GOP gubernatorial candidate John Warren announced the start of a Bitcoin mining operation in Greenville called GEM Mining.
About Bitcoin
Bitcoin was launched in 2009, and only 21 million Bitcoins will ever exist.
Cryptocurrency like Bitcoin is a form of electronic money, with no real notes or coins. Miners, or computers, earn bitcoin rewards by verifying global transactions on the internet.
Owners of bitcoins do not have to divulge any personal information like name or credit card number. They can transfer Bitcoins anytime or anywhere that accepts Bitcoins.
“Blockchain technology” eliminates reliance on third parties such as banks, creating a shared public ledger. Each transaction is a “block” that is “chained” to a code, creating a permanent record of each transaction.
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The buying and selling of Bitcoin is confined to a miner using computer algorithms. The miner who completes a new block is rewarded with Bitcoin.
“Cryptocurrency mining operations are an important part of how Bitcoin and most other cryptocurrencies work,” said Gerald Dwyer, professor of economics and BB&T Scholar at Clemson University. “Mining operations use large groups of dedicated computers to attempt to solve a numerical problem, which is part of verifying new blocks of transactions.
“These mining operations use relatively skilled employees who are well paid,” Dwyer said. “Having these mining operations here can be a distinct benefit to the workers employed and help increase South Carolina’s involvement in new cutting-edge technologies.”
Dwyer serves on the advisory board of the South Carolina Emerging Tech Association, a group of blockchain enthusiasts “who believe that every individual, business, and branch of government in the great state of South Carolina can benefit from this and other emerging technologies.” , according to its website.
Respond to skepticism
Skeptics say Bitcoin is an asset without government backing and is highly volatile. Its value can rise or fall sharply.
Joey Von Nessen, a research economist at the University of South Carolina’s Darla Moore School of Business, said he thinks crypto mining companies are legitimate businesses, but high risk.
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“These mining companies are responding to an opportunity in a market that has emerged,” he said. “There is room for a business to succeed in this space.
“However, cryptocurrency is a brand new phenomenon in recent years with no long-term track record. It’s impossible to know if it will be in the long term.”
He said mining computers require large amounts of electricity to operate.
“South Carolina in general has lower energy costs and there is more land availability in the Southeast,” he said. “That may be one of the reasons we’ve seen several start in South Carolina.”
For the average investor, he said the volatile price carries risk. Last April, Bitcoin hit an all-time high spot price near $65,000 before declining. The spot price at noon Friday was $38,644.
“It relies on consumer perception as the driver of its value,” Von Nessen said. “It is difficult to predict its value. Like any type of investment, an individual must make an informed decision.”
About the CEO
A native of Easley, Tate has been a luxury real estate investor in the Orlando area since 2012, where he facilitated the buying and selling of real estate with cryptocurrency and blockchain assets.
A graduate of ITT Technical Institute and the University of Phoenix, he holds a bachelor’s degree in electronic engineering and business and information systems, as well as a master’s of business administration in technology management.
Litchain was incorporated by Tate in South Carolina on August 24, 2021 and is a company in good standing, according to the SC Secretary of State.
Tate said that unlike other crypto mining hubs and bitcoin farms, Litchain allows investors to own their own hardware. A monthly fee covers electricity costs, network costs and support.
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“My vision is that the everyday individual can imbibe crypto before the world surrounds them,” Tate said. “Because once that becomes the norm, there won’t be as many opportunities for underserved and underresourced communities to truly uplift themselves, their finances, and the lives of future generations.”
business relationships
Jonna Turner, Communications Director at Litchain, worked at OneSpartanburg, Inc. for two years before leaving to join the Tate team.
Turner was the former director of the Cherokee County Chamber of Commerce, and Tate was looking for someone who had business connections there since he was planning to move to Gaffney.
“The reason I accepted (the position) was that I felt it would catapult our state into the realm of technology and innovation,” Turner said. “This state really needs it. I love helping the community and I figured what better way to do that than to be a part of something new and exciting here in upstate.”
Turner acknowledged that understanding how cryptocurrency works can be confusing.
“I’m still learning myself,” she said. “We are not a financial adviser, but we can tell people what cryptocurrency and blockchain technologies can do. When we think about the evolution of money – barter, coins, paper, debit cards and plastic is the natural progression of how we accept payment.”
She said she understands why anyone would be skeptical and noted that an investor should be responsible with their crypto choices just as they would with any other investment.
“The downside is that there are ups and downs,” she said. “But we control our own money. The individual is in control. There is no middleman like stock exchanges. You have to be responsible and financially savvy.”
But there are a lot of advantages. She said Litchain has educational partnerships with Spartanburg Community College and Limestone College, and many investors are turning to cryptocurrency to build generational wealth.
Go here for more information about jobs at Litchain
Contact Bob Montgomery at [email protected]