New York town prohibits Bitcoin mining to save electricity

Plattsburgh, New York: Plattsburgh town of New York has banned Bitcoin mining to save electricity. The town gets low-cost electricity from St. Lawrence River. According to the local newspaper, the amount of allotted hydropower got expensive in December and January, and some residents complained their bill increased as much as $300.

The small town has put an 18-month of the prohibition on cryptocurrency mining to preserve natural resources. “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,” Plattsburgh said on Thursday.

Those who will break the law will be paying $1000 each day to violate the moratorium. The process of mining requires high powered computers to confirm the validity of transactions. Some environmentalists have estimated that Bitcoin miners will use more power than electric cars in the near term.

The city council said it needs time to consider zoning laws and lighting regulations “before commercial cryptocurrency mining operations result in an irreversible change to the character and direction of the city.”