The United States has virtually been at the war with cryptocurrencies. However, a news which would come as a huge relief for the cryptocurrency enthusiasts is that cloud mining service Coinmint has actually managed to win a bid of an abandoned smelter. The company would be using the same for running the mining services.
The company not only won the rights for using the premises for mining operations but also bagged the rights to 15 MW of low-cost power. This would actually subsidize the cloud mining operations.
The supply of power is subject to agreement among the different members for the tariff. The total amount of investment by Coinmint would be around $ 165 million. In total, 150 jobs would be created in Massena town which is nearest to the smelter.
Previously, it was only in Washington that companies used to get subsidized power for running their operations. This recent news has changed each and everything. According to the town supervisor of Massena, Steven O’Shaughnessy, the availability of affordable power is one of the main unique selling points of the town.
This news comes at a time when one of the renewable power generators by the name of Enel in Europe has declined to power the cryptocurrency miners, stating that the business model is not a sustainable one.
Different countries different opinions:
The scenario all over the world is quite mixed when it comes to powering the mining operations. In Russia, various authorities have come to an agreement that the extra power in the grid would be fuelling the mining rigs. On the other hand, China which houses some of the biggest mining rigs is closing down the mining operations.
It remains to be seen whether the lure of job creation can make the states as well as cities to provide licenses to mining operations. With the interest in cryptocurrencies on the rise, and the operations being profitable with subsidized power, the ability of the cryptocurrency mining sector to boost the local economy is enormous. The precedences, however, are against the cryptocurrency mining sectors as authorities, as well as governments, are against cryptocurrencies in general.
Nonetheless, this is positive news for not only the cryptocurrency enthusiasts but also people who are running cryptocurrency mining operations. It remains to be seen whether it remains alone positive news for the sector or whether the other cities and states would follow suit soon enough.