Plattsburgh became the first city in the United States to ban virtual currency mining activities. The ban was implemented back in March 2018 with the intention to mitigate the negative effects related to Bitcoin mining. Now, Plattsburgh decided to lift the own-year-long ban on crypto mining operations.
With the ban, Plattsburgh could have invested in solving the issues associated with the Bitcoin mining industry. The CEO of Zafra, Ryan Brienza, seems very positive about the decision to lift the ban.
He said that he is currently excited and surprised about this decision. Moreover, he seems very positive about the future of the crypto space.
About it, he commented:
“We’re going to be looking at expanding it. (We’re not) sure (if we’ll expand= at the same building, or maybe (consider) some other locations. We have some in mind so we’re going to be figuring that all out tomorrow.”
The decision was ake by the Plattsburgh City Council after a 5.1 vote lifting the ban on cryptocurrency mining activities. The vote took place on Thursday night.
One of the reasons behind the ban was to protect taxpayers from having to pay larger electricity bills in case there was no more hydropower electricity available. If that happened, the city would have had to buy more expensive energy, affecting citizens in the region.
Cryptocurrency mining farms tend to be located in places with low electricity costs. Refrigerating and powering large-scale mining operations is costly and it requires cheap energy sources. Plattsburgh Mayor, Colin Read, explained that the society needs to be more conscious of the electric usage and use it in responsible ways.
According to the new law, if the municipality exceeds the hydropower threshold and cryptocurrency miners are the reason for this situation, they will have to pay for the expensive power. Moreover, they will also have to recycle 70% of the heat that they generate from the computers.
Brienza explained that they are working on another project that aims at creating a lot of jobs associated with crypto mining activities. This will involve the recycling of excess heat for some other activities as well.
The cryptocurrency mining industry has been criticized for consuming large sums of energy, producing noise, and accelerating global warming.