New avenues have been opened for the cryptocurrency miners with the approval of New York regulators for low-cost electricity rates. The crypto miners have been enduring the false image that they have a negative impact on the environment and will lead to higher electricity rates for the entire neighborhood, this false image gets cleared with the announcement of NY regulators.
Negotiated rate for Crypto-miners by New York regulators
New York wants to encourage cryptocurrencies’ miners in the state, due to which they have approved a new power rate structure for the miners. The rate structure has been implemented in Massena, an upstate town in New York where the miners can negotiate contracts on the individual and isolated basis. This act will protect the local residents from any undue increase in the power rates due to grid usage. This decision comes as fresh take on the earlier decision when more than 36 municipal power authorities announced to charge crypto miners a higher rate for grid usage than paid by others.
Crypto miners had migrated to New York since it is one of the regions having rich hydro-electric sources of electricity creation. Locals feel threatened because they feel that the crypto miners will soak all the power supply and the local residents will be forced to pay more for power. Due to this rising fear among the residents, New York regulators have approved this plan to strike a balance between the improving population of cryptocurrency miners in the state and shielding the residents against high energy costs.
Upstate New York has an abundance of low-cost electricity which can be used effectively to fulfil the needs of the residents and existing customers and also encourage economic growth in the region with cryptocurrencies, according to the New York Department of Public service.
Lower cost for Power usage
New York upstate has efficient hydroelectric dams which supply power to its customers for just 3.9 cents a kilowatt hour as compared to the average price of 13 cents per kilowatt-hour. New York has been more sharing and open to economic growth, rather than the other parts of the county which increased the price rates by as high as three-fold for crypto miners.
The approval by the New York regulators stands as a positive sign for the growth of the cryptocurrency market. The low-cost electricity will ensure greater profits for the miners for their electricity-consuming business.