In America, the miners are not happy, the mayor of Plattsburgh demands a moratorium on crypto-production

March 7, 2018

Mining can irreversibly change the city.

The American city of Plattsburgh (New York) requires an 18-month moratorium on the development of crypto-currencies in the city. The initiator of the proposal was Colin Reed, Mayor of Plattsburgh.

Conflicts of miners and cities due to electricity – started

Reed said that the two companies that produce Bitcoin in the city already consume almost 10% of the total power supply in Plattsburgh. Plattsburgh receives a fixed amount of inexpensive electricity under the terms of the deal, signed during the construction of hydroelectric power plants on the St. Lawrence River back in the 1950-ies.

And the mining companies exhaust a significant part of this offer, forcing the city to compensate for its purchases on the open market, where tariffs can reach 100 times the base cost.

The city is already buying additional power during the seasonal upswing in energy demand, and Bitcoin mining will exacerbate the problem, confirms Bill Tracy, head of the municipal lighting department of Plattsubga.

The moratorium proposed by the city administration allows the city of Plattsburgh to consider laws on zoning and land use and municipal lighting regulations before commercial operations on crypto-currency mining will lead to irreversible changes in the character and direction of the city, the mayor said.

He is opposed by the representatives of the mining companies: "I think that the proposed (moratorium) is not needed, and I'm worried that Plattsburg may miss the opportunity for innovation. In my opinion, a direct moratorium will hurt the city more in the long term, "says David Bowman, who manages one of Bitcoin's companies in Plattsubrg, writes Cryptovest.

Author: Evgenij Novožilov, Analyst Freedman Club Crypto News

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