In the last couple of months, cryptocurrency miners and electricity providers have been involved in a tag of war that has had both parties looking for mutual grounds. Lawmakers and electricity producers started prohibiting crypto mining activities after electricity consumption increased drastically in various regions. Some countries banned completely cryptocurrency mining activities while others have had to set up measures to regulate these activities.
Cryptocurrency mining requires a lot of electricity to help run the powerful computers used to generate cryptocurrencies. Miners have had to relocate to areas with cheap electricity to help reduce their cost of production. This has led to overcrowding of miners in areas like Washington DC and Quebec. Due to increased electricity consumption local residents, started filling complains about these activities.
Cryptocurrency mining brings many opportunities to the miners and to the local communities. Mining pools have provided residents in the area with jobs. In addition to jobs opportunities, electricity providers have realized that these mining activities could provide them with additional revenue. This, however, comes at a price.
Miners suggest a way out
Electricity providers have realized miners are not so bad after all. According to reports, the increased electricity demand could provide more revenue if proper measures are put in place. However, in order to enjoy benefit from the mining industry, electricity providers will have to part away with millions of dollars in investments for new power stations and lines need to provide extra electricity.
Despite the benefits electricity providers stand to gain, investing such huge amounts is not a risk they are willing to undertake. Constant price fluctuations and lack of a framework have made the cryptocurrency market very unpredictable. The many uncertainties in the industry have made electricity utility to fear being left with huge bills to pay after the industry stumbles down.
Electricity providers are not the only once thinking of solutions to help provide a better environment for both parties. Miners are making suggestions like using a utility’s “peak load” to run their operations. They believe by making use of the idle capacities throughout the year and stop mining when the utility needs the extra electricity would help the power struggle between the two industries.
JohnPaul Baric, the CEO of the MiningStore, stated that cryptocurrency mining companies have had a hard time in getting power companies to take them seriously. According to him, electricity providers are not taking the mining industry seriously because it is still in its early stages and they are not sure how long it will stay in business.
Like many miners, Mr. Baric suggested that miner could make use of the peak load capacity when they are not in use and take off days in months like July and August when the peak loads are needed. He added that by taking the extra electricity off the electricity providers hands, both parties will be able to benefit from the situation without incurring the extra cost. Baric believes cryptocurrencies are here to stay and authorizes should do their part in creating a better environment for the industry.