Bitcoin mining is becoming increasingly difficult for US-based miners, not because of automatic difficulty adjustments but because of local politicians. This time around, Washington state announced a significant price hike that could lead many miners to consider moving to another state or country.
On June 01, Chelan County, one of the 39 counties in Washington, announced the implementation of a new energy tariff for bitcoin miners, which would increase the previous rates by 29%.
“Tariff 36,” says mining companies, will have to pay a higher rate than all customers because their electricity consumption is much higher than the standard rate.
On the other hand, according to local media, NewsRadio 560 KPQ Douglas County (another county in Washington) does not allow mining companies to open due to its high energy consumption, which, according to county statistics, accounts for 25% of the available energy. .
The new tariff was due to take effect in early 2022
According to KPQ, the new tariff should have come into effect in early 2022; However, possibly due to all the new rules and regulations in force in the country, it was delayed till June.
PUD commissioner Gary Arsenault said the new tariff was “innovative”. He argued that the Commission has simply created a new rate for such demand.
Tariff 36 would not immediately be charged to the three major mining companies (they did not officially name the companies), as they had made “significant investments in their operations” prior to its implementation.
Chelan County Claims It Is Not Against Bitcoin Mining
For the past 4 years, Chelan County’s Public Utility District (PUD) has taken steps to curb illegal cryptocurrency mining, as initially, the city was at the forefront of this type of activity.
However, this quickly became a problem for the county due to the amount of electricity required by the miners, even posing a risk of fire in many places and potentially damage to the county’s electrical equipment. This forced the PUD to make several power cuts to protect the equipment.
Using this argument, Arsenault clarified that while Chelan County is not against mining or cryptocurrency, the county cannot tolerate underground miners who are intentionally using the county’s energy illegally and charge reasonable fees for it. without paying.
It should be noted that although the increase in energy rates for mining activity is a bit high, it is an activity that other states want to ban or delay for environmental reasons. So, for now, Chelan miners can continue to pay a little more than before with peace of mind.
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