The authorities of the state of Kentucky in the United States are opening an investigation to examine whether subsidizing cryptocurrency mining operations increases the cost of electricity for residents of the state. The development comes as the United States is slowly emerging to become a hub for cryptocurrency miners, who are flooding into the country from several parts of the world. The Kentucky Public Service Commission (PSC) is currently examining two proposed contracts to provide electricity to BTC miners at a discount.
Contracts have been extended to the Kentucky government by Kentucky Power and Ebon International LLC. While the first company was a reputable electricity supplier in the state, the second operated mining facilities in Louisa and Waverly.
“Cryptocurrency Mining design extreme and exponential energy use, and discounts for these facilities can lead to higher electricity bills for the residents of Kentuck every day,” one official statement from the Kentucky government read.
Investigations into these two contract proposals have been opened by advocates from the Kentucky Resource Council and the Kentucky Public Service Commission.
Growth after record losses that BTC Miner seen amid the ongoing cryptocurrency slump.
In August, a Bloomberg the report said that Bitcoin miners lost over $1 billion (about Rs 8,200) in the recent crypto crash.
If states like Kentucky provide electricity at reduced rates to BTC miners, that could save the community from losing money. On the other hand, using too much of the grid to support the electricity usage of BTC miners can overload the system and hinder smooth operation.
PSC, back in 2021, approved $12.7 million (about Rs. 104 crore) to upgrade Big Rivers Electric. The purpose is to allow the company to facilitate cryptocurrency minting through its Block Software Mining facility in Paducah, Kentucky.
“Investments like this are often made at the expense of long overdue upgrades that will benefit everyday residents. PSC doesn’t need to approve this kind of spending so Kentuckians end up stuck with the bill. When a utility builds new or upgrades infrastructure for one company and then relocates, everyone else’s electricity bills go up to cover the costs,” the post noted.
BTC mining, from July 2021 to 2022, resulted in the emission of 27.4 million tons of carbon dioxide, which is equivalent to the emissions of 6 million cars per year. Findings published by Earthjustice and Sierra Club in a new journal Instruction book.
While Kentucky’s stance on accepting offers from Kentucky Power and Ebon International LLC is pending, other parts of the world are also looking to control electricity demand, usage and availability. , especially as BTC mining is prevalent in the region.
The Georgian City of Svaneti, Last Year, Really Made Crypto Miners Commit holy oath anti-intoxication in the process, due to lack of electricity.