The state of New York doesn’t have the best of reputations when it comes to cryptocurrency. Its BitLicense requirement has made operating a crypto business very expensive and difficult. In an effort to turn things around, state regulators are now aiming to attract Bitcoin and altcoin miners.
New York and Bitcoin Mining
On paper, there is no reason for cryptocurrency miners to ever consider setting up shop in New York. The state has a very problematic regulatory ecosystem, and the situation seemingly won’t be changing anytime soon. Few people are aware that the region could soon provide access to very cheap electricity.
A new electricity rate structure has been proposed by New York regulators. Miners who are contemplating setting up shop in this part of the United States would be able to negotiate a more favorable price. The municipality of Massena is leading the way in this regard, as its utility provider will review contracts individually. Additionally, it will ensure that other clients do not suffer from higher rates due to the influx of mining firms.
This news comes at a very interesting time for the cryptocurrency industry. Earlier this year, the New York regulators decided to increase the overall electricity rates for cryptocurrency mining firms. It seems that decision hasn’t paid off favorably for the state of New York, although there may be other reasons for this sudden change of heart.
New York State Department of Public Service Chair John Rhodes stated:
We must ensure that business customers pay a fair price for the electricity that they consume. However, given the abundance of low-cost electricity in Upstate New York, there is an opportunity to serve the needs of existing customers and to encourage economic development in the region.
With so many mining firms and investors looking to find the cheapest electricity rates possible, competition is direly needed in this regard. New York State seeks to have its finger on the pulse of this industry as soon as possible. It remains to be seen how much electricity will be provided to mining firms, though. Depending on the overall consumption, there may be some limitations put in place.
For the cryptocurrency industry, this news comes at a more than opportune time. Considering that there are so many negative developments taking place in the price department, it remains to be seen if this news can appease investors and speculators once again. Hydroelectric power is one of the many renewable energy sources cryptocurrency mining operators can take advantage of in order to cut down on overall operational costs.