Hydropower dam in New York powers crypto mining farm
A hydropower dam near the Valatie falls, New York, will now be used to power an entire crypto mining farm. The initiative is all set to start functioning in the fourth quarter of 2018.
Bitcoin mining has become so popular nowadays, as it gives crypto enthusiasts a chance to win 12.5 Bitcoins as a reward for verifying the transactions and adding a block to the blockchain. But, this comes at a rather hefty price that miners have to pay to get the required electric and computational power.
DPW Holdings LLC. F New York have come up with an ingenious solution to this issue. DPW’s sibsidiary, Super Crypto mining, is going to establish a Bitcoin mining farm at the site of the dam and will be powered by the hydroelectricity generated from the dam itself.
DPW Holdings’ CEO and Chairman, Milton Ault III, said in an statement to the press,
“Our successful repurposing of Valatie Falls dam to provide clean, low-cost, renewable power to Super Crypto’s future co-located mining farm is another important step in our strategy to create an economically viable, self-sustaining cryptocurrency mining business.”
“This project provided a unique opportunity for DPW subsidiaries to collaborate and innovate to create a new model for cryptocurrency mining, for which electricity is by far the largest operational cost factor.”
Regulators eye high power consuming mining farms
Crypto mining has been looked down upon owing to its high power consumption. According to report, almost 1% of the power generated worldwide is used to mine cryptocurrencies, which is a massive value.
The Public Service Commission of New York made an announcement in March that the power authorities of the city can charge mining farms higher rates for high density loads. If the maximum demand surpasses 300 KW or the load density exceeds 250 KW per square foot, the tariffs would be increased.
With the number of crypto mining firms growing by the day, it is essential for the crypto mining community to come up with a solution to the problem of excessive power usage. The hydroelectricity powered mining firm is a good example of this, which can be implemented widely to cut down on the power costs.
Image via Shutterstock
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