Another cryptocurrency extraction operation has set foot in the north of the state.
Litchain Corp. announced that it will invest $ 80 million and lease part of the ownership of the Gaffney Public Works warehouse on SC 105 for its operation.
Founder and CEO Tony Tate said the site will house up to 20 modular data centers that house Bitcoin mining computers. He said the company will create between 25 and 30 jobs, locally, that pay $ 60,000 or more.
Last fall, Greenidge Generation Holdings of Dresden, NY, announced that it would use part of the former LSC printing plant in Spartanburg County to begin its cryptographic mining operation.
Last month, former GOP gubernatorial candidate John Warren announced the launch of a Bitcoin mining operation in Greenville called GEM Mining.
About Bitcoin
Bitcoin was launched in 2009 and there will only be 21 million Bitcoins.
Cryptocurrencies like Bitcoin are a form of electronic money, with no real bills or coins. Miners, or computers, earn Bitcoin rewards by verifying global transactions on the internet.
Bitcoin owners do not have to disclose personal information such as a name or credit card number. They can transfer Bitcoins anytime or anywhere that accepts Bitcoin.
“Blockchain technology” eliminates the use of third parties as banks, creating a larger shared public book. Each transaction is a “block” that is “chained” to a code, creating a permanent record of each transaction.
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The purchase and sale of Bitcoin is limited to a miner who uses computer algorithms. The miner who completes a new block is rewarded with Bitcoin.
“Cryptocurrency mining operations are an important part of the operation of Bitcoin and most other cryptocurrencies,” said Gerald Dwyer, a professor of economics and BB&T Scholar at Clemson University. “Mining operations use large groups of dedicated computers to try to solve a numerical problem, which is part of the verification of new transaction blocks.
“These mining operations employ relatively knowledgeable, well-paid employees,” 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 advanced technologies.”
Dwyer is 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.” your report. website.
Addressing skepticism
Skeptics say Bitcoin is an asset without government support and is highly volatile. Its value can increase or decrease drastically.
Joey Von Nessen, a research economist at Darla Moore School of Business at the University of South Carolina, said he believes cryptographic mining companies are legitimate businesses, but they pose a high risk.
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“These mining businesses are responding to an opportunity in a market that has already come into existence,” he said. “There is room for a company to succeed in this space.
“However, cryptocurrency is a new phenomenon in recent years, without a long-term history. It is impossible to know if it will be long-term.”
He said mining computers require large amounts of electricity to operate.
“South Carolina generally has lower energy costs and there is a greater availability of land in the southeast,” he said. “That may be one of the reasons we’ve seen so many start in South Carolina.”
For the average investor, he said the volatile price carries a risk. Last April, Bitcoin hit a record spot price of about $ 65,000 before declining. The spot price on Friday at noon was $ 38,644.
“It relies on consumer perception as the engine of its value,” Von Nessen said. “It’s hard to predict its value. Like any type of investment, an individual has to 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 has facilitated the buying and selling of real estate with cryptocurrency and blockchain assets.
A graduate of the ITT Technical Institute and the University of Phoenix, he holds a bachelor’s degree in electronic engineering and information systems and business, as well as a master’s degree in business administration in technology management.
Litchain was incorporated by Tate in South Carolina on August 24, 2021 and is in good standing, according to the SC Secretary of State.
Tate said that unlike other cryptocurrency mining centers and Bitcoin farms, Litchain allows investors to have their own hardware directly. A monthly fee covers electricity costs, network charges, and support.
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“My vision is for the everyday individual to be able to wrap their head around cryptography before the world wraps its arms around it,” Tate said. “Because once it becomes the norm, there won’t be so many opportunities for underserved and under-resourced communities to elevate themselves, their finances, and the lives of future generations.”
Business connections
Jonna Turner, director of communications for Litchain, worked at OneSpartanburg, Inc. for two years before leaving to join Tate’s team.
Turner was a former director of the Cherokee County Chamber of Commerce, and Tate wanted someone who had business connections there as he planned to settle in Gaffney.
“The reason I took (the job) was that I felt like it was going to catapult our state into the realm of technology and innovation,” Turner said. “This state really needs this. I love helping the community and I felt the best way to do that was to be a part of something new and exciting here in the north of the state.”
Turner acknowledged that understanding how cryptocurrency works can be confusing.
“I’m still learning,” he said. “We are not a financial advisor, but we can tell people what cryptocurrencies and blockchain technology can do. When we think about the evolution of money: barter, currency, paper, debit cards and plastic, this is the natural progression of how we accept payment “.
She said she understands why someone would be skeptical and noted that investors should be responsible for their cryptographic choices as they would any other investment.
“The downside is that it has its ups and downs,” he said. “But we control our own money. The individual has control. There is no intermediary like scholarships. You have to be responsible and have financial literacy.”
But there are many advantages. She said Litchain has educational partnerships with Spartanburg Community College and Limestone College, and that many investors are looking for cryptocurrency to build generational wealth.
Find out more about Litchain jobs here
Contact Bob Montgomery at bob.montgomery@shj.com