What are the various problems faced by virtual currency mining companies?

Virtual currencies such as Bitcoin require a huge amount of calculation to process transactions. ``Mining'' allows you to obtain newly issued virtual currency as a reward in exchange for providing surplus computer resources for processing, but companies that perform such mining on a large scale have various problems. It is known that

Crypto Firms Are Buying Old Industrial Buildings for Mines

In 2017, North American mining company Core Scientific was preparing to open its first mining facility. CEO Darin Feinstein investigated more than 500 locations, but said that he focused on ``low electricity rates'' above all else. After researching ideally expandable land in rural areas where electricity prices are low, with large, empty buildings with vents for cooling and space to store computers, Feinstein discovered an abandoned land in North Carolina. I noticed the factory.

This factory, which has been abandoned for over 20 years since it was closed in 1999, originally manufactured Levi 's clothing. The biggest advantage of this factory, which is built on 70 acres (approximately 283 square kilometers) of land, was that it was close to a hydroelectric power plant. Mr. Feinstein bought this factory, filled it with computers, and began mining, growing into the largest mining company in North America.

Many mining companies, like Core Scientific, are looking for ``unused factories,'' ``cheap land,'' and ``reusable industrial infrastructure.'' Mike Collier, CEO of mining company Foundry , says, ``Factories that have a lot of electrical infrastructure installed and are designed to remove heat are very popular.'' In 2018, a number of mining companies entered the apple-producing East Wenatchee, Washington state, due to low electricity rates thanks to five hydroelectric plants and an old machine shop. East Wenatchee is a growing emerging city.

How did a famous apple producing area rich in nature transform into a 'Bitcoin mining' town? -GIGAZINE

However, the entry of mining companies often causes resentment from local residents. In some areas, problems such as friction between miners and local residents, bankruptcies, lawsuits, and bribery have occurred, as well as concerns about the environmental impact of mining, which consumes large amounts of electricity. Masu. In June 2021, more than 200 people gathered at the regional headquarters of the New York State Department of Environmental Conservation, led by a local radio station, to protest the Greenwich Power Plant in Massena, New York, which was acquired for mining purposes. In fact, in Massena, the hot water produced by the Greenwich Power Plant turned the water from nearby Seneca Lake into hot water.

A situation occurs where the lake turns into hot water due to exhaust heat from the power plant acquired for Bitcoin - GIGAZINE

Despite concerns raised by environmental groups and others, the expansion of mining factories continues unabated. Governments are also gearing up to attract mining companies, with Kentucky passing a bill waiving electricity fees for mining factories in the state, and North Dakota and Wyoming offering surplus gas to mining factories. Passed a bill giving tax breaks to oil companies.

It is true that cryptocurrency mining is booming, but there are still various issues such as environmental impact, safety concerns about old factories being used, and the understanding of residents near factories. .

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