Consumer awareness around cryptocurrencies has peaked! When Bitcoin prices crossed $19,000, practically everyone from the media to your next-door neighbour were talking about Bitcoin. This crypto-craze has led a number of government organizations to investigate into possibilities of money laundering and other similar crimes. Governments around the world have been regulating cryptocurrency related operations - and Plattsburgh in New York has now become the first city in the US to consider banning cryptocurrency mining. 

Thanks to the hydroelectric power which is generated from the St. Lawrence River, Plattsburgh has some of the cheapest electricity rates in the entire country! This cheap power, for years, had been something that the city’s residents were proud about. However, with Bitcoin Mining becoming increasingly popular, a number of miners are now taking advantage of this cheap power that the city generates.

In January, Plattsburgh went over their allotted power and had to purchase electricity from the open markets at a much higher price. This added almost $100-$200 to some residents electricity consumption bills as the additional cost was divided among the city’s residents. While this isn’t uncommon during the winters, a majority of the blame this time is being put on the cryptocurrency miners.

Officials of the city had been considering banning cryptocurrency mining in Plattsburgh for quite some time now. The city’s officials are considering this ban on cryptocurrency mining in the region - but not for long. If this does go into effect, this will be an 18 month ban on mining activities in the region. Officials are now working with miners to discuss possible solutions, involving making them pay up more for the excess electricity that they consume. 

While there are other businesses and operations in town which consume a similar amount of electricity, the Mayor would rather see organizations which provide employment consume more electricity than Bitcoin Miners. Cryptocurrency miners are reportedly consuming about 10% of the city’s total electricity supply. 

“It would never cost the Plattsburgh citizens any more money to let more miners come in here because the miners are willing to pay for those overages when it's super cold,” Tom Pillsworth, a Plattsburgh local and partner at the second largest Bitcoin mine in the city, told Motherboard. “The miners are more than willing to pay.”

If this proposal goes into action, this will be the first such incident in the United States. Globally too, similar plans are being considered. China has been a nation which has been quite strict on cryptocurrencies - be it trading, investments - or even mining. China has imposed strict rules around mining for cryptocurrencies in the country - including limiting the power supply to miners or increasing the costs. 

It would be interesting to see if this ban does go into effect. The kind of solutions that the city of Plattsburgh sets up for mining and miners could set the path for more such decisions by other cities around the world in the years to follow.