NY Bitcoin Operation Caused One Town’s Electric Bills to Surge
A lot of people have been talking about Bitcoin, the latest in cryptocurrency. Even though it's not a physical currency there are still "miners" in the industry. What the heck are they and why are they using select cities in New York for their operations?
The stories of people making a ton of money of Bitcoin are becoming more and more popular. What the heck is Bitcoin? According to CNN Money, Bitcoin is basically a business transaction with no one in the middle. No banks are needed in the deal. Once a transaction is done you can then exchange Bitcoin for different currencies.
Could these processors move in and cost you money by increasing your electric bill?
Much like paper need money needs to be printed, Bitcoin needs to be coded with a series of complex math problems. People who create the currency are called "miners". In short, the miners basically print the currency to the internet.
These "miners" generally operate in small building with several computers and they seek out cities with low electric costs.
According to New York Upstate, Plattsburgh was a hot spot for Bitcoin miners because of their low power provided by a nearby hydroelectric dam. However, the Bitcoin operations forced the town to go over its power supply. This forced local residents bill to skyrocket.
Should these mining companies have the right to be anywhere even if their bill could end up costing you?