Plattsburgh, New York, has become the first city in the United States. UU In prohibiting the mining of cryptocurrencies in the city during the next 18 months. The city council voted unanimously to impose the ban at a council meeting last night and the mayor's office says the law's purpose is to "consider regulations before commercial cryptocurrency mining operations produce an irreversible change in character and address of the city ". "
The mayor of Plattsburgh, Colin Read, told Motherboard that the city has the cheapest electricity rates in the world. Residents pay around 4.5 cents per kilowatt-hour, compared to the 10 cents the rest of the country pays on average. Plattsburgh also has an incentive for industrial companies, which only pay 2 cents per kilowatt-hour. This has led crypto currency miners to use the city as a base for their operations because their profits depend on cheap electricity, and mining consumes an astronomical amount of energy. Motherboard notes that Coinmint operates the largest Bitcoin mining operation in Plattsburgh, and used about 10 percent of the city's total energy budget in January and February.
Mayor Read proposed the moratorium after residents complained about the increase in their energy bills earlier this month. "I have heard many complaints that electricity bills have increased by $ 100 or $ 200," Read told Motherboard. "You can understand why people are upset." The mayor's office states that the law also protects the natural, historical, cultural and electrical resources of Plattsburgh, as well as the health and well-being of its residents.
"I've been hearing a lot of complaints that electricity bills have increased by $ 100 or $ 200. You can understand why people are upset."
In simple terms, cryptocurrency mining refers to the computational process of solving mathematical problems to secure the block chain and extract the digital files. There is a limited amount of tokens, and the more a cryptocurrency is extracted, the more difficult those mathematical problems become. This means that more sophisticated computers are needed to boost mining activity. Mining is so big now that it is also hurting PC players by raising the prices of graphics cards, while companies like Samsung are now making chips designed only for cryptocurrency mining.
The law of Plattsburgh will become effective once it has been approved by Read and filed with the Secretary of State of New York. Officials will also work with residents and local cryptocurrency miners over the next 18 months on energy issues.