Cryptocurrency miners in New York have a reason to smile after state authorities approved a new electricity rate scheme for the burgeoning industry. According to a Bloomberg report on July 12, New York authorities approved the new rates in order to help balance electricity usage between cryptocurrency miners and local residents.
The new power rates will be provided by the Massena municipal utility. Currently, Massena has low electricity rated compared to the most parts of New York. Residents living in the area pay 3.9 cents per kilowatt-hour, while other average regions pay 13 cents per kilowatt-hour.
Crypto miners in New York have had to pay premium electricity rates. High power rates in the area resulted in the state government authorizing 36 municipal power authorities to charge crypto miners more for electricity consumed compared to other consumers. This caused a decrease in crypto mining activities in New York, as many could not afford to pay for these prices.
The new prices are aimed at creating an environment that encourages crypto mining and protects residents from rising electricity prices. The new rates are much more favorable to miners compared to the high prices they have had to pay in the last several months. They will also allow authorities to monitor electricity usage in the region in order to maintain the required balance, according to reports.
Regions like New York, Quebec and other regions with low electricity rates have had to put up measures to control the increased crypto mining in their regions. Due to their low electricity rates, they become favorable grounds for crypto miners who moved there seeking “greener pastures.” As such, there was increase in electricity consumption, consequently increasing electricity prices.
While New York and Quebec are trying to control electricity consumption in crypto mining, Japan is allocating excess solar energy to mining. Kumamoto Electric Power Company, a Japanese solar energy provider, launched a crypto mining arm earlier this week. The mining arm will make use of the excess electricity being produced by the company to mine crypto. In recent months, Japan has had significant developments in its energy market that has caused favorable prices. By using cheap renewable energy for mining, Japan will create a suitable environment for cryptocurrency mining and trade.
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