The cryptocurrency space lit up Friday on the news that a small town in New York had become such a hot spot for crypto mining that it’s had to put a moratorium on the activity.
The city council for Plattsburgh, population of about 20,000, on Thursday approved an 18-moratorium on crypto mining.
Earlier this month, the city issued an emergency alert about this new law coming. The alert had called for anyone caught mining cryptocurrency during this moratorium to face fines of $1,000 for each day they did their work within the city’s limits.
Cheapest electricity in the world
It’s been reported by Motherboard that Plattsburgh has the “cheapest electricity in the world” because of a hydroelectric dam located there. According to the U.S. Energy Information Administration, the average retail price for electricity in the country is slightly above $.10 per kilowatt-hour.
Motherboard reported that industrial enterprises like crypto miners pay just $.02 per kilowatt-hour when they mine in Plattsburgh.
With that kind of rate difference, the city saw an increase in the number of corporations moving there. That was actually a goal, as it served as an incentive to attract new businesses. However, city officials didn’t see the electricity guzzlers like miners moving there, including one corporation in particular.
Notes, Motherboard, the city only has a certain amount of power to allot each month. The amount is fine enough for residents and business, but not enough for mining needs. According to Motherboard, “a Puerto Rican company called Coinmint, used roughly 10% of the city’s total power budget in January and February.”
Residents complained of seeing their electricity bills balloon, prompting the city council to look into the miners. The city will be working with residents and miners to find a solution.