The cryptocurrency market is growing rapidly and the launch of new crypto coins seems to be uncontrollable. However, crypto mining activities are increasingly becoming a major concern in some cities in the US due to the elevated power consumption that goes with it.
Crypto mining is a critical part of the multibillion dollar industry since it gives the crypto miners an opportunity to contribute to the cryptocurrency revolution. Mining only requires a good desktop, a cheap renewable power, and a cool environment to enhance the productivity rate.
The municipalities in regions such as Plattsburgh and Massena are highly worried about the vast amount of electricity that goes into mining, which is drastically affecting the electricity prices for their primary consumers. In addition, the authorities are also anxious about the rewards that mining can bring to the economy of the states and whether it’s worthy enabling people to indulge in the mining business.
Tim Currier, a Mayor of Massena Municipality, stated recently that people are consuming public resources without creating jobs for the locals or paying the bills and taxes for the benefit of all in the region.
Massena has become a potential site for crypto mining operations that are supported by Coinmint. Using an old aluminum plant, the company requires more than 400 megawatts of power to fuel its operations, which can serve over 30,000 homes. Recently, residents launched complaints to the city authorities about the rise in electricity bills and crypto mining was blamed due to the presence of Coinmint’s crypto mining activities.
Other regions that have been affected by the cryptocurrency mining operations include Plattsburg which has already temporarily suspended the new mining operations. Also, Lake Placid is considering barring the application approvals for new mining business entities due to high power consumption. The New York Power Authority has also stopped allocating hydropower to the crypto mining firms.
But instead of banning the mining firms, state regulators can consider charging the crypto miners higher electricity rates than the normal consumers or to utilize the strong heat generated from the mining activities to power up some industries.
The development and growth of technology is inevitable though it tends to threaten existing markets and culture. Regulators are currently struggling to comprehend the concept of crypto mining and whether there are benefits accrued from the activities. This is what is happening in the world today as the cryptocurrency market explodes.
