Bitcoin Mining Firms Get A Pushback For Trying To Profit From Cheap Electricity

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Plattsburgh’s city has banned the launch of new Bitcoins mining Company’s for nearly 18 months. This will therefore give the City enough time to evaluate the best ways to handle the raised energy bills for the residents.

Bitcoin mining simply refers to the production of the Bitcoins Cryptocurrency. The creation process however requires huge computing powers thereby causing the miners to shift towards locations with lower energy costs.

Subsidies

However, as a result of the hydropower and subsidies offered by some states, they can offer electricity rates that can compete with the Chinese Bitcoins mining market with the existence of lower temperatures that will easily reduce the cooling costs.

Being home to two Crypto-mining companies, one of them; Plattsburgh BTC in a website statement says that it started as a small family business in an apartment, however upon expansion, it shifted to a much larger space that could help in accessing more power.

In an email by Plattsburgh BTC’s CEO, the suspension of the mining business was a great move by the City, however the company shall be actively consulting with the City to find the right way forward that will be neutral to the resident’s interests.

The company has also indicated its plans to shift from its current location, It further states that Plattsburgh BTC is ideally situated for Cryptocurrency mining since it has a cool climate and low energy rates.

Low Cost Energy

It is a general believed that lower energy costs are likely to encourage higher investments rates for the region. The 2 Crypto-mining companies electric costs could have gone higher by at least 60% had the new rates been effected in the beginning of January.

The Public service commission for New York said that the electricity costs for the high density load customers will be increased, however the costs for the customers who are using less electricity will remain normal.

According to Shone Anstey, any company that wants to compete with the Chinese miners has to keep the electricity costs below 4 cents. However according to the U.S energy information administration, the average U.S rate is about 10.27 cents.