City in NY Temporarily Bans Commercial Bitcoin Mining
The city of Plattsburgh, NY just took an unprecedented stand against cryptocurrency mining.
As was first reported by Motherboard, the Plattsburgh metropolis council on Thursday nighttime "unanimously" passed a new local law, which imposes an eighteen-month moratorium on any new commercial cryptocurrency (i.e. Bitcoin) mining; existing operations can continue.
The measure, first introduced by Plattsburgh Mayor Colin Read on March 1, is intended to "prevent miners from using all the metropolis's cheap electricity," the report notes. Violators could face up civil penalties of up to $1,000 each day.
"It is the purpose of this Local Law to let the Urban center of Plattsburgh the opportunity to consider zoning and land use laws and municipal lighting department regulations before commercial cryptocurrency mining operations results in irreversible change to the character and direction of the Urban center," the measure states.
Mayor Read introduced the measure after local residents began complaining about unusually high electric bills, according to Motherboard. Plattsburgh has cheaper-than-boilerplate electricity, thanks to a nearby hydroelectric power dam, making it "increasingly attractive to cryptocurrency miners." In Jan – as is oft the case in winter months – "Plattsburgh went over its power resource allotment and was forced to purchase electricity on the open marketplace for far higher prices," Motherboard reports. The price was split amongst metropolis residents, who were not happy about the increases.
Some people saw bills get upwardly by $100 to $200, according to Mayor Read, only businesses were hit, too. Mold Rite Plastics saw its monthly neb go upwards by $22,000, the local Press-Republican reports.
In January and Feb, a major commercial Bitcoin mining operation operated past the Puerto Rican company Coinmint "used roughly 10 percent of the metropolis'south total power budget," Motherboard reports. So, after those high bills, people took aim at cryptocurrency mining operations.
Coinmint reportedly offered to shut downwardly for several days if its activities neared the monthly power allotment, the Press-Republican says.
At present, for the next year and a half, the urban center volition non be issuing any new permits for commercial cryptocurrency mining. Meanwhile, at to the lowest degree one local miner told the news outlet they are willing to pay for overages during the winter.
About Angela Moscaritolo
Source: https://sea.pcmag.com/news/20111/city-in-ny-temporarily-bans-commercial-bitcoin-mining
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