Slashdot Mirror
Bitcoin Backlash as 'Miners' Suck Up Electricity, Stress Power Grids in Central Washington (seattletimes.com)
An anonymous reader shares a report: Public hearings for rural electric utilities are rarely sellout events. But the crowd that showed up in Wenatchee two weeks ago for a hearing about Bitcoin mining in Chelan County was so large that utility staff had to open a second room with a video feed for the overflow. The turnout wasn't surprising. Chelan County, along with neighboring Douglas and Grant counties, has been at the center of the U.S. Bitcoin boom since 2012, when the region's ultracheap hydropower began attracting cryptocurrency "miners."
[...] As a result, an area famous for apples, wheat and conservative politics has been transformed into a kind of cyber-boomtown, with Bitcoin mining operations that range from large-scale, state-of-the-art warehouses to repurposed cargo containers to backyard sheds. By the end of this year, according to some estimates, the Mid-Columbia Basin could account for as much as 30 percent of the global output of new Bitcoin and large shares of other digital currencies, such as Litecoin and Ethereum. But as in any boomtown, success has come at a cost. As the cryptocurrency industry morphs into larger, more energy-intensive operations, the Basin's three public utilities districts (PUDs) are reassessing how they deal with it, and whether they can -- or should even try to -- keep up.
[...] As a result, an area famous for apples, wheat and conservative politics has been transformed into a kind of cyber-boomtown, with Bitcoin mining operations that range from large-scale, state-of-the-art warehouses to repurposed cargo containers to backyard sheds. By the end of this year, according to some estimates, the Mid-Columbia Basin could account for as much as 30 percent of the global output of new Bitcoin and large shares of other digital currencies, such as Litecoin and Ethereum. But as in any boomtown, success has come at a cost. As the cryptocurrency industry morphs into larger, more energy-intensive operations, the Basin's three public utilities districts (PUDs) are reassessing how they deal with it, and whether they can -- or should even try to -- keep up.
I remember getting into an argument here about four years ago about this problem with Bitcoin- that "mining" coins is based on everyone racing to use as much electricity as possible, and the number of kilowatt-hours burned per generated coin increases with time, as part of the design. "ATMs use electricity too" was the consensus opinion.
Now we have a "currency" that gets "mined" using more electricity than Ireland uses. The wattage devoted to this crap has increased sevenfold during the past 12 months. People only use it as an investment, making it useless as a currency. "Everyone accepts it as payment" doesn't mean anything when everyone who has it is too scared to spend it.
There was a fair bit of sarcasm in there, but "Charge enough to cover costs" is a lot more complex when you need to run up more capacity AND your market is artificially saturated by users that will evaporate if you increase pricing to cover the increased capacity.