According to a Wall Street Journal report, crypto mining has turned New York into a battleground. To slow down energy consumption and curb the expansion of crypto mining, New York Senator Anna Kelles proposed a “two-year moratorium on reactivating fossil-fuel power plants for off-the-grid cryptocurrency mining”.
In the current bull market, companies in New York have been reviving ancient fossil fuel power facilities to take advantage of the gap between the cost of electricity and the price of Bitcoin (BTC). Some have now been switched from coal to natural gas, which is now utilised to power Bitcoin mining generators.
Impact of Bitcoin mining on locals
A 2017–2018 assessment of the effects of mining on local economies revealed the following regarding Plattsburgh, New York:
“Crypto mining in upstate New York increased annual electric bills by about $165 million for small businesses and $79 million for individuals”
The increased trade brought on by the flood of Bitcoin miners—owing to “abundant electricity”—hasn’t benefited the local economy. Bitcoin mining does not require a lot of human resources, hence it does not provide a lot of jobs for locals.
According to its investor relations documentation, Greenridge claims to have been 100% carbon natural since 2021. Critics of crypto mining and its energy usage appear to overlook carbon neutrality. Greenridge Generation has switched from coal to natural gas to prove its carbon-free claim, and Kelles’ criticisms are directed at them.
Influence of bitcoin mining on energy efficiency
Greenridge Generation has switched to Bitcoin mining since they can mine it for just $22/MWh, which is nearly 5x cheaper than the average price paid by Americans. Mining firms mine Bitcoin using their own energy costs, which reduces the energy cost. However, rather than being emission-free, as with many other carbon-neutral firms, this is accomplished through acquiring carbon credits. Regardless of their stance, they’ll need a new air quality permit to keep mining Bitcoin in the state.
However, Greenridge “operates an integrated 106 MW gas-fired power plant and bitcoin mining operation in Upstate New York.” Greenridge is a major shareholder in Atlas Holdings, which operates an additional 1000 MW of power plants in New York and New England and is a major shareholder in Greenridge.
A local conservation organisation is working to prevent Greenidge’s permit from being renewed.
