Cryptocurrency is hot right now and the prospect of being able to turn a computer on and earn money has attracted both big money and small. Mining cryptocurrencies like Bitcoin has been lucrative in the past but it is getting more expensive. Mining of Bitcoin and any other minable crypto can generate expensive utility bills so miners seek out low cost energy locations to host their hardware.
Plattsburgh a city in upstate New York with a population of under 20,000, has just placed a moratorium on cryptocurrency mining. The moratorium imposed by the city is now in effect for a period of eighteen months. During the period of the ban, the city council expects to amend the local zoning code and / or municipal lighting department regulations to address and regulate Commercial Cryptocurrency Mining operations. If you break the law, you will be fined up to $1000.
Plattsburgh is a community that benefits from low cost power associated with a nearby hydro-electric plant. A local newspaper reported this past week that several sizable cryptocurrency operations within the city limits are “sucking up more power than … what Georgia Pacific’s entire paper mills does.”
Earlier this year, the local public service commission decided to charge more for the thirsty cryptocurrency mining operations in an attempt to slow consumption from these operations.
During the winter months, Plattsburgh topped the amount of its allotted hydro-electric power due to the freezing temperatures AND the mining. Residents complained they were paying more in their energy bills. Thus, mining operations can expect some changes.