The authorities stopped issuing permits to mining companies due to environmental concerns, but MPB uses renewable energy sources. The old plant mines Bitcoin rather than sell its energy, which the sectors against the activity reject.
In New York, there is an old hydroelectric power plant that now mines Bitcoin with its surplus electricity. However, the authorities of the city stopped issuing permits to mining companies due to environmental concerns.
The representatives of Mechanicville Power Station (MPB) are not worried about that as they use renewable energy sources. In recent months, a sharp controversy arose in New York due to the reactivation of the Greenidge plant to mine cryptocurrencies. It was formerly a coal-powered plant before ceasing operations, but a mining company adapted it to natural gas exclusively for Bitcoin.
The directive board of MPB remains positive because of the energy sources that they produce. Besides, they explain that Bitcoin mining allows them to make three times more money than selling electricity for other purposes.
Importance of an Old Hydroelectric Power Plant Mining Bitcoin
Old plant MPB now mines Bitcoin rather than sell its energy, which it produces from renewable sources. According to some local media, the most prominent aspect of the plant is its capacity. Besides being more profitable thanks to mining, it also contributes to keeping the environment clean.
The cryptocurrency mining business has been the victim of fierce attacks due to the alleged environmental pollution it causes. The price of Bitcoin dropped by more than 50% when Tesla said they would stop accepting Bitcoin as payment for its electric cars. Its CEO Elon Musk strongly criticized the mining activity for harming the environment with its CO2 emissions.
Additionally, the Government of China has strictly banned Bitcoin mining on its territory since May. The authorities of the Asian nation have made various accusations against this activity. They include environmental pollution and the danger that crypto assets pose to the economic and financial stability of the country.
Amid that context, old New York hydroelectric power plant MPB has continued its plans to focus on Bitcoin mining.
New York Authorities Have Not Allowed the Plant to Continue Mining
In New York, there is a law that prohibits granting permits to new Bitcoin mining projects. Some environmental groups receive support from political sectors to struggle to ban the mining activity for three years.
Although the legislative body dismissed the latter, the pressure to impose this prohibition increasingly rises. The old hydroelectric power plant mines Bitcoin rather than provide its service for other purposes. The sectors that warn about the excessive growth of the activity in the area do not welcome this situation.
The board of directors of the plant states that they conduct their mining projects in a testing phase. However, the authorities are the ones who will have the last word.
Bitcoin plays an essential role in the economy worldwide, which has led many companies to venture into mining. The authorities of many countries have attacked mining for polluting the environment, but many miners now use renewable (green) energy sources.
By Alexander Salazar