The first US city issued a temporary ban on Bitcoin mining. Is this just the beginning of crypto mining bans? The cheap electricity was alluring to these crypto miners. One could guess the slight humming of a few operations grew slightly louder and louder as more and more operations were set up in Plattsburgh, a small lakeside town in upstate New York.
I would guess the obnoxious humming grew louder and more prominent with the suddenly expensive electricity. The miners are reported to be using more than 1000 times the amount of electricity than the whole town's previous usage. Plattsburgh's city council stated,
“It is the purpose of this Local Law to facilitate the adoption of land use and zoning and/or municipal lighting department regulations to protect and enhance the City’s natural, historic, cultural and electrical resources.”
In a Bloomberg article, the city council shows concern for the future culture and character of the city and want to push regulations, “before commercial cryptocurrency mining operations result in an irreversible change to the character and direction of the city.”
Crypto Mining Free Enterprise Now Under Government Regulation
They are suggesting lighting regulations and zoning laws will help keep the reigns of the city's direction in their hands and not the hands of opportunity seeking crypto miners. The original temporary mining ban period is for 18 months. And violators could be sued $1000 per day of violation.
According to CoinDesk, the ban could end earlier than originally planned by the city. The city may need money and reasons for people to move to boost cash flow locally. Councilor Rachelle Armstrong seems to think the idea of a ban could be disruptive to the local economy when she stated,
"The time period may be too long," she is concerned that, "the ban would cost the city business amid the uncertainty."
If you are a small town and have reasons for people to move there. My suggestion is to embrace the change and plan for growth.
If cheap electricity brings a future for your local economy, start looking into solar, wind and water energy sources. In this case, the city already utilizes hydropower which creates their situation of "cheap electricity." So, what is next? Most STEEMsters would think, "Ahh, wind and solar options, of course!"
Well, in a perfect world, we would solve bigger issues that benefit all as the whole. But in this case, "The New York State Public Service Commission has ruled that power companies can charge higher rates to cryptocurrency mining operations."
Is it because they are making money using electricity? Well, I am sure we could start listing out every company, trade or business that makes money using electricity and charge them higher rates too. Maybe even fine electric companies?
Free Your Crypto Mining From The Needs Of Fiat Mining
I made offers to how the towns could benefit with these new prospectors, upgrade your sources to free sources of energy. But, I am sure they will be more than happy to just charge miners higher rates eventually making crypto mining operations no longer profitable. Investing in a plan will free you from having to pay out most of your profits.
To overcome this, we must work smarter, not harder.
Invest in your operations. Invest in wind turbines and/or solar panels. A Tesla Powerwall should be a business goal. Then, write off the tax credits. Most of these energy alternatives have leasing programs. Get some land, qualify it for agricultural tax write-offs, and set up a sustainable operation using solar energy.
This really should be a no-brainer. No matter where you set up shop, evaluate your location and decide on a game plan. If your game plan involves you moving across the country to where ever the cheap electricity is, you are setting up for failure.
Because the higher rates idea is not going anywhere. It is a way to keep control of the opportunity.
Break the chains and free your future by harvesting your own electricity for your crypto mining operations. Otherwise, you will suffer the losses during the higher rates on electricity initiatives and "temporary" mining bans. The whole idea of mining crypto is about freedom, so walk the walk.
What do you think?
Are the bans going to increase? Are higher rates on miners going to be a norm? How do you propose to maintain a profitable mining operation?
I am all ears.
Resources:
Bloomberg. "Bitcoin Mining Banned For First Time In Upstate New York Town" - https://www.bloomberg.com/news/articles/2018-03-16/bitcoin-mining-banned-for-first-time-in-upstate-new-york-town
Fortune. "Bitcoin Miners Can Now Be Charged Extra For Electricity New York Power Authorities Say" - http://fortune.com/2018/03/17/bitcoin-miners-can-now-be-charged-extra-for-electricity-new-york-power-authorities-say/
CoinDesk. "Plattsburgh's Crypto Mining Ban Could End Earlier Than Expected" - https://www.coindesk.com/plattsburghs-crypto-mining-ban-could-end-earlier-than-expected/
Solar City - http://www.solarcity.com/
Wind Energy Foundation - http://windenergyfoundation.org/wind-at-work/wind-consumers/wind-power-your-home/
Database of State Incentives for Renewables & Efficiency® - http://www.dsireusa.org/