Upstate Cryptomining Opponents Take Their Case to Albany

Protesters today will bring to Albany a dispute over cryptocurrency and the environment in the Finger Lakes region, a battle that could have major repercussions on the future of cryptomining.Environmentalists, local government officials, and small-business owners are planning to press Governor Hochul for a statewide moratorium on “proof of work” cryptocurrency mining. The process requires the use of extraordinary amounts of energy, raising environmental concerns. A Dresden-based Bitcoin mining plant run by Greenidge Generation has drawn the ire of local entrepreneurs and officials who believe it will harm the Finger Lakes’ wine and tourism industries.In 2019 the plant began Bitcoin mining operations and now operates at full capacity, 24 hours a day, 365 days a year. The company says it is operating well within its permits, which are up for renewal by the end of March.“We can create new career options for upstate New Yorkers, while meeting the state’s environmental standards,” a Greenidge Generation representative told the Sun.Many locals disagree, claiming that these jobs are insubstantial compared to the risk posed to the local wine and tourism industries. They say the plant, which sits on the western shore of Seneca Lake, is bad for the environment and for business.Mark Pitifer, speaking on behalf of Waterloo Container, which supplies glass for 90 percent of New York State’s wineries, advocates for a moratorium on cyrptomining.“As a company, Waterloo Container believes that our land, lakes, scenery and overall quality of life contribute to who we are as a business,” Mr. Pitifer told The New York Sun. “We cannot in good faith support this.”Another critic is entrepreneur James Elkin, a native to the region who has owned and operated businesses including restaurants, venues, and F.L.X. provisions.“It’s a wonderful thing to be able to make a living in this county,” Mr. Elkin told the Sun. “As an entrepreneur myself, far be it from me to cast judgment on people doing business.”However, Mr. Elkin was dubious of the Bitcoin plant.“We are a region that has been so buoyed by the wine industry and by the tourism industry,” Mr. Elkin told the Sun. “I don’t know how many people Greenidge employs but I’d bet it’s a lot smaller than the wine and beer industry.”Others point to a cost-benefit analysis that claims locals are paying the price for benefits being reaped by out-of-state investors.A Geneva city council member, Ken Camera, who has worked in utility consulting, told the Sun, “It’s bad for business and bad for the environment,” saying that there are “only private goods and benefits and only public bads.”Mr. Camera is hoping to allow investors in the plant to recoup their investment and then shutter operations permanently. He and others are unhappy that the plant runs at full capacity instead of using energy just at peak times.“As divisive as our local politics have been in Geneva, we all support taking care of the lake,” Mr. Camera said. Geneva is the largest city on Seneca Lake.One dissenting voice is R.M. Reynolds of POS Outfitters, a Dresden-based software company. Greenidge Generation has “been more than generous to the community and town with donations in addition to the added taxes,” Mr. Reynolds told the Sun. “The crypto hysteria is fueled by mass lack of knowledge.”The protestors in Albany are hoping to recreate the successes of the 2014 campaign to ban fracking in New York State. As with fracking, the results of this cryptomining dispute could well set a precedent for New York and other areas of the country.

Upstate Cryptomining Opponents Take Their Case to Albany

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