“If I can make it there, I’ll make it anywhere”
Introduction
“If I can make it there, I’ll make it anywhere”
Famous words of Frank Sinatra at a time that symbolizes New York’s attraction and glamour. For the most part, these words still ring true to this day despite the past year in current events. But the people that are looking to build upon this phrase are not your usual celebrities, artists, and actors, but rather bitcoin miners. That’s right. Literally aspiring tech geeks looking to find cheap energy to power up thousands of computers.
To the outside world, this may seem what it is. But to the industry insiders and bitcoin enthusiasts, bitcoin mining is a necessary activity to secure the Bitcoin network.
To clarify, bitcoin mining is not happening in downtown Manhattan, just imagine the electricity costs there if it were. But rather bitcoin miners are flocking to upstate New York where life is a bit slower, less populous, and with abundant electricity thanks to the numerous lakes and rivers naturally located there.
What’s up with Upstate New York?
And considering the remote environment and excess hydroelectricity, climates are also on average cooler than other parts of the US thanks to its high northern geographic location. The average temperature in upstate New York can range around 70 degrees Fahrenheit during summers, whereas in Texas, summer days average around 90 degrees Fahrenheit. A 20 degree Fahrenheit difference could be a huge differentiator in the cooling costs of mining farms.
Upstate New York is also littered with many rivers and lakes. The western New York area is considered part of the Great Lakes region and borders Lake Ontario, Lake Erie, and the world-famous Niagara Falls. The central part of the state contains the popular Finger Lakes, which consists of 11 long creepy-looking finger-shaped lakes. Just by looking at the image below, you’ll understand the reasoning behind its name.
East of the Rocky Mountain ranges, New York State is the largest hydroelectric power producer and hydropower is the largest source of renewable energy in the state. And similar to Sichuan, they too also have problems transferring the created hydropower to the metropolitan areas down south towards New York City. But recent years have seen the initiative to build efficient direct transmission lines towards the more needed areas. Despite the efforts, there still exists an abundance of hydroelectric power in the upstate New York region.
One of the major players in the area at the moment is Greenidge Generation which has a Greenidge plant about 11 miles south of the buoy of Seneca Lake. Although they have been blamed for heating up the average temperature of Seneca Lake, they claim they actually are a positive beacon to the community than what others may think.
As Dale Irwin, the CEO of Greenidge said:
“The water we are permitted to use to power homes and businesses in New York, and operate our fully carbon neutral bitcoin operation, is a minuscule fraction of the total water in Seneca Lake. The temperature data shows the lake is not ‘a hot tub,’ and Greenidge is having no impact whatsoever on the lake. It remains a gem for all of us in the Finger Lakes to enjoy.”
Greenidge at the moment has over 8,000 computers and is preparing for installing more as it plans to ramp up its bitcoin mining capacity to 45 megawatts by December, as per NBC News. And with any bitcoin mining farm, giving back to the community is just as vital as it is necessary. Greenidge has already created 31 jobs, donated large sums of money to the local fire department, the local school district, and has paid $272,000 in taxes to the local government.
Another bitcoin mining boost came to the community a few months ago when the New York State Assembly failed to pass an environmental protection bill that would have clamped down on new and expanding bitcoin mining operations. This could potentially allow a friendlier stance towards bitcoin mining which would subsequently lead to more innovative ways to use energy in the sector. At the moment, most bitcoin miners seek a greener method in using energy to power up their thousands of bitcoin miners. By liberating bitcoin mining, which most places already are, it will only be natural for bitcoin miners to turn to alternative greener energy methods.
The original bill can be found here:
https://legislation.nysenate.gov/pdf/bills/2021/S6486B
Nevertheless, since Greenidge’s operations have already been set up, they have nothing to worry about as this bill wouldn’t be directed towards them. But anyways, the company has already made a deep commitment that it will operate an entire carbon-neutral bitcoin mining operation at its facility in Upstate New York.
From their press release:
Greenidge will purchase voluntary carbon offsets from a portfolio of U.S. greenhouse gas reduction projects. Each project has been reviewed and certified by one of three well-recognized Offset Project Registries, the American Carbon Registry (ACR), the Climate Action Reserve (CAR) and Verra, ensuring that any projects funded by Greenidge reduce emissions or increase sequestration of greenhouse gas in a manner that is real, permanent, and verifiable…
Greenidge will also continue to participate in the Regional Greenhouse Gas Initiative (RGGI), a market-based program in which participating states sell CO2 allowances through auctions and invest proceeds in energy efficiency, renewable energy, and other consumer benefit programs to spur innovation in the clean energy economy and create local green jobs. Greenidge purchases RGGI allowances each year to cover 100% of its CO2 emitted from power generation and has done so since it began gas-fired operations in 2017.
By traveling further up Lake Ontario and through the St. Lawrence River, you’ll come across a small town, Massena, which has also gained attention with its fair share of bitcoin miners coming into town. The town’s major electrical company, Massena Electric, has been working closely with mining operations in getting energy sourced. One particular mining group called Petawatt Group has purchased 140 acres of land with the intent of creating a new economy in the small town.
Conclusion
New York’s geographic location near many metropolitan areas, its abundance of hydroelectric power, and cooler climate make it another competitor to Texas’ lure in bringing bitcoin mining. And considering many crypto funds and mining VCs are located in New York City, a quick flight to the northern part of the state is a lot more convenient than you may expect. It’s hard to say how much hashpower the state of New York commands at the moment, but they sure are a pivotal place for North American miners to start.
Sources:
https://www.businessinsider.com/bitcoin-mining-seneca-lake-finger-lakes-new-york-hot-tub-2021-7
About Valarhash
Chengdu-based Valarhash integrates mining machine sales, miner hosting, mining pool, and mine construction services. Led by CEO Fiona Lv, Valarhash aims to provide users with transparent and beneficial mining plans using advanced technology, with lower barriers of entry. Business operations cover hardware research and development, digital asset transactions and 1TMine hash power contract sharing. With a leading position in the hash power market, Valarhash integrates frontier resources with global vision, providing crypto compute service (CCS) and linking physical and digital worlds with blockchain technology.
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