The city of Plattsburgh, New York, with its population of around 20,000 as of 2016, is a peaceful location that offers new opportunities with old values to its citizens, new and old alike.
It also offers some of the most economical energy prices in the U.S. due to its hydroelectric power. This sets this peaceful town apart from several of its just as serene counterparts across the country.
However, while the city always welcomes new business ventures that promise the creation of new jobs within the area, its cheap energy offerings have attracted a segment that it is not too happy about these days. Bitcoin mining in Plattsburgh , New York might come under more scrutiny.
Bitcoin mining in New York, who would have thought?
While it is no Chinese warehouse, the mining operations in Plattsburgh have actually gone on to gain significant traction.
Starting with a 20 computer mining facility in 2014 called Plattsburgh BTC, David Bowman set the trend of Bitcoin mining in the city.
However, he did not remain to be the only one, and was soon joined by other mining pools that set up shop all over the city, wanting to take advantage of the energy that the city had to offer at cheap prices – all while being in the State of New York.
But soon enough, the mining of Bitcoin started to show the expected spike in energy consumption, this spike in pricing caused alarm for city officials and they seem to want to take action to prevent these spikes.
City Mayor Colin Read mentioned that the energy consumption is now actually affecting city planning.
“With great use of additional power we are put over our threshold each winter and we are put over our threshold of ratepayers.” Read stated.
New York and the cryptocurrency industry
In this instance, it makes perfect sense as to why the officials of the city want take the action of banning bitcoin mining in New York, they want to be able to regulate their energy prices accordingly, thus giving their local citizens access to the sort of rates that they are used to on a regular basis. If it is true that the energy consumption and the consequences that follow are affecting prices as well city planning in general as well, that could lead to diminished quality of life presently and in the future. It is then necessary for city officials to act in a manner that prevents these potential situations.
Yet, bitcoin mining in New York is not the only thing that has been a difficulty for players in the cryptocurrency industry. New York has been one of the strictest cities with its Bitlicense for cryptocurrency exchanges and has only granted the license to a select few cryptocurrency exchanges. Officials have given the license to more exchanges as time has progressed yet it still has very strict measures that one must meet prior to being granted such a license.