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City in New York Bans Bitcoin Mining

Thanks to its proximity to a hydroelectric dam, Plattsburgh has very cheap electricity. The average electricity costs in the US is just over 10 cents per kilowatt-hour; in Plattsburgh, it is just 4.5 cents. Industrial operations are offered an even better rate, just 2 cents per kilowatt-hour. 

But if the city exceeds its allotment, it has to purchase electricity on the open market at a significant premium. That was the case in January, when electricity bills rose for everyone in the city, and the city authorities think cryptocurrency companies are to blame. In fact, the largest crypto operator, Coinmint, used about 10% of the city’s power in the first two winter months. 

Thus, the city council introduced an 18-month moratorium on new cryptocurrency mining operations. The city authorities will use this time to develop legislation related to commercial miners. It may be the case that mining companies will have to pay for all extra electricity amounts. Notably, the existing mining companies will not be affected by the moratorium and are allowed to continue their operations.