Cryptocurrency
Bitcoin mining allegedly heats a lake near New York into a “whirlpool”
– The residents of the idyllic Seneca Lake reject the Bitcoin power plant in their neighborhood. © Andre Jenny / Picture Alliance
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by Gernot Kramper
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A financial investor bought an old power plant. Now it’s running at full load and running a server farm. The residents are outraged – because of the climate effect and because the cooling water warms their lake.
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Bitcoins are very harmful to the climate because their production uses so much energy. But what has previously been considered a global problem is becoming a very specific and local problem around Seneca Lake near New York. The idyllic lake is known as an excursion destination, small boats and swimmers populate it. But gradually the water is cozy and warm – like a bathtub, angry residents tell NBC News. And that has nothing to do with climate change, but with the new owner of the gas-fired power plant near the lake. In fact, this claim is probably an exaggeration, the wastewater volumes of the power plant are far too small to noticeably warm the large lake. The operator publishes data that do not show any warming. In fact, the outrage stems more from the power plant’s new business model.
Cheap electricity is the key
The plant was sold to financial investor Atlas Holdings, who had special plans. The system now not only feeds the public power grid, it runs around the clock at full load to operate around 8,000 Bitcoin mining computers. The idea behind it: In order for mining to be worthwhile, electricity must be obtained cheaply. At 30 cents for the KWH as well as for Germany’s private consumers, mining is not worthwhile. With your own power plant, which to a certain extent only produces for your own consumption, you save costs and state taxes – this makes electricity much cheaper. “These crypto firms are looking everywhere to get relatively cheap energy in a relatively cool climate,” said Yvonne Taylor, vice president of the Seneca Lake Guardian, the broadcaster. “It’s a terrible business model for all of New York State, the United States, and the planet.”
