Bitcoin and other cryptocurrencies are constantly faced with crackdown attempts from Governments around the world.
An 18-month moratorium is being considered by one small manufacturing town in upstate New York on new commercial operations that mine Bitcoin and altcoins — the process by which individuals and companies can help verify cryptocurrency transactions while earning digital coins as a reward.
This novel ban to give the town time to establish regulations and zoning around mining operations is being spearheaded by Plattsburgh, N.Y. mayor Colin Read. The reason being massive energy consumption.
The cryptocurrency mining process required considerable computing power and therefore electricity. This process takes about 10% of Plattsburgh’s monthly supply of power, said Read to the New York Times. As long as the power consumption does not go over certain thresholds, the city receives its power at discounted rates based on long-standing contracts.
The mayor also said crypto mining’s high energy use is forcing the town to purchase additional power, sometimes at costs that are 100 times higher.
A close observation upon the power consumption of crypto mining process by miners that have set up shop in Plattsburgh, equated it to the power consumed by a local plastics manufacturer and this is true even if the plastics manufacturer employ 200 people and the cryptominers does not hand out huge number of jobs.
The amount of energy needed to run bitcoin is tremendous and it is only logical that as cryptocurrency prices rise —the reward for mining and power consumption will only increase.
Iceland is a favourite hot spot for miners due to the cold weather (which keeps their servers cool). These operations consume more electricity than is used to power all the homes in the country this year.
Based on the current price of Bitcoin, Bitcoin miners will use 54 terawatts of energy per year. To put that in perspective, all of Israel uses 56 terawatts annually.