Plattsburgh NY first U.S. city to ban cryptocurrency mining

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NY regulators want to levy a tax on high-load cryptocurrency mining operations which use large amounts of power and drive up prices for other customers.

There are two Bitcoin mining businesses in Plattsburgh. Compared to the USA average of just over 10 cents per kilowatt-hour, the citizens of Plattsburg only pay 4.5 cents. It has instituted an 18-month moratorium on new Bitcoin mining after complaints from residents sick of rising electricity prices.

Meanwhile, Plattsburgh has become the first city in the country to put a moratorium on cryptocurrency. Besides being power-hungry, crypto-mining companies don't employ as many people as some other businesses, Read argued. The average price for power across the USA is 10 cents per kilowatt-hour. In January and February the mine used about ten percent of the total amount of power used by the city.

Because of how many miners there are in the area, Plattsburgh went over its standard energy allotment in January. Plattsburgh also has an incentive for industrial enterprises, which only pay 2 cents per kilowatt-hour.

Cryptocurrency mining is an energy-intensive process that generates tokens and validates transactions on a blockchain by running processor-intensive computations, normally using specialized chips. Plattsburgh is amending lighting department regulations to allow officials to regulate commercial cryptocurrency, and any violations will be penalized with fines of up to $1,000 per day and the potential seizure of computer mining equipment, according to a news release.

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Cryptocurrency mining firms in the state of NY may be looking higher utility bills following a ruling from the public utilities regulator.

The low cost of electricity has enticed a number of mining operations to set up shop, but the reduced cost for commercial electricity wasn't meant to support these power-hungry enterprises.

The change in electricity pricing is expected to drastically increase the costs associated with cryptocurrency mining in upstate NY. The town has shown interest in various proposals, including charging the miners for overages in the city's power budget.

The city council for Plattsburgh, population of about 20,000, on Thursday approved an 18-moratorium on crypto mining. Yet, Plattsburgh only has 104 megawatt-hours per month. Miners have purportedly flocked to the city for its below-average electricity costs, thanks to a nearby hydroelectric dam.

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