Bitcoin mining has become a "power hog" with alarming power consumption! The United States has used a killer move

Cryptocurrency miners who buy power from certain New York power companies will face a new electricity tariff starting March 23, according to a ruling announced Thursday by the New York Public Service Commission.

The commission approved 36 northern municipal power companies to impose additional charges on companies with maximum power demand exceeding 300 kilowatt-hours.

Just days ago, the city of Plattsburgh, New York, home to two Bitcoin mining companies, also approved an 18-month ban on cryptocurrency mining in order to maintain its electricity supply.

Shone Anstey, president and co-founder of cryptocurrency analysis firm Blockchain Intelligence Group, said moves to raise electricity costs and restrict cryptocurrencies could be part of a growing trend among local governments that see little economic benefit from companies.

He said mining companies provide relatively little tax revenue and employ relatively few people compared with other companies that consume large amounts of energy.

“Each municipality needs to make up their mind, whether they want to or not. If they don’t, that’s OK. Some cities have a lot of power,” Anstey stressed.

In addition, he also believes that mining companies are likely to move to areas with cheaper electricity, such as Alberta, Canada. Electricity is like a security mechanism for cryptocurrency networks. If you want to attack the Bitcoin network, you must have more electricity than a small country.

One third of electricity

Cryptocurrency mining is a process where individuals or groups are paid in cryptocurrency to run complex mathematical equations on high-performance computers to confirm the validity of transactions.

Municipal power companies that make up New York City's electric utility group asked the state for permission to impose tariffs because they said miners were using too much of their low-priced electricity to pass on to customers.

In some cases, a single mining company can use up to a third of a municipal utility's electricity, according to the commission.

“We must ensure that business customers pay an appropriate price for the electricity they use. This is especially true in smaller communities with limited access to low-cost electricity,” John B. Rhodes, the commission’s chairman, said in a March 15 statement. “Existing residential and business customers in upstate communities served by municipalities will see significant increases in their utility bills if we fail to act.”

Willing to pay a fair share

David Bowman, founder and CEO of Plattsburgh BTC LLC, said he supported the commission's ruling.

"People choose Plattsburgh because of the cheap electricity, the cold climate and the universities," he said. "No one is trying to raise housing prices for people in their own town."

In addition, he said: "Miners are happy to pay their fair share to ensure taxpayers are not subsidizing their operations."