Bitcoin mining will become much more difficult for US miners, not because of automatic difficulty adjustment, but because of local politics. This time, the state of Washington has announced a significant price increase, which may make many miners consider moving to another state or even a country.
On June 1, Chelan County, one of 39 counties in Washington, announced a new electricity rate for bitcoin miners that would raise previous rates by 29%.
“Tariff 36says mining companies will have to pay a higher rate than all customers because their electricity consumption is much higher than the standard rate.
On the other hand, according to local media, NewsRadio 560 KPQ of Douglas County (another Washington county) does not allow mining companies to open due to their high energy consumption, which the county says is 25% of available energy.
The new tariff was to come into force at the beginning of 2022.
According to CPC, the new tariff was to come into force at the beginning of 2022; however, perhaps due to all the new rules and regulations being rolled out in the country, it has been delayed until June.
Harry Arceno, Commissioner of PUD, called the new tariff “innovative”. He argued that the commission simply created a new rate for this type of demand.
Tariff 36 will not be charged immediately to three large mining companies (they did not officially name the companies), as they made “significant investments in their activities” before its introduction.
Chelan County Says Not Against Bitcoin Mining
Over the past 4 years, the Chelan County Public Utilities Department (PUD) has taken steps to stop illegal cryptocurrency mining, as the city was initially at the forefront of this type of activity.
However, this quickly became a problem for the county due to the amount of electricity the miners needed, even creating a risk of fire in several locations and potentially causing damage to the county’s electrical equipment. This resulted in the PUD cutting power several times to protect the equipment.
Using this argument, Arceneau explains that Chelan County is not against mining or cryptocurrencies at all, but the County cannot allow illegal underground miners to knowingly use the County’s energy and not pay the appropriate fee for it.
It should be noted that while energy tariff increases seem somewhat overpriced for mining, this is an activity that other states want to ban or delay for environmental reasons. So for now, Chelan miners can continue to work with peace of mind, paying a little more than before.
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Credit : cryptopotato.com