As a symptom of human greed, cryptocurrency data mining is endangering the future of our planet. The activity that relies on thousands of servers dedicated solely to cranking out digital guesses that enable the creating of new crypto currency--that is why it is euphemistically called "minning" The process is hugely electric energy intensive. Mining uses more electricity than some mid-sized European countries. Profits from crypto mining are driving demand for new fossil fuel plants, or extending the life of old ones, that interns makes reducing carbon emissions more difficult.
At Seneca Lake in upstate New York, a private equity firm bought obsolete Greenidge coal plant and converted it to a plant that uses fracked gas in 2014. In 2020 the company plugged in thousands of computer servers in an off-grid data center to mine Bitcoin. Rather than a score a bonanza in the crypto world, the firm generated unanticipated local opposition. Residents of Seneca Lake began noticing a crassly droning coming from the data center--fans operating non stop to cool the massed electrical equipment. Air pollution levels also jumped. Operating for just 48 days in 2019, the operation produced the carbon emission equivalent of 7,700 gasoline driven cars driven for a year. When the plant ramped up by 2020, the data center emitted the equivalent of 44,500 cars. That level was reached with 6,900 mining servers. The operators target is 32,500. The more machines generating guesses, the more likelihood of a generating a correct code. [photo credit: Getty images]
Greenidge Generation LLC, under the cover of producing electricity from a defunct plant and using a clean air permit intended for that purpose, created a new business model for resurrecting fossil fuel generating plants to mine cryptocurrencies. Activists contacted Earthjustice, a prominent and successful environmental litigation group, for help battling the crypto operation in their backyard. Earthjustice and the Atlantic Chapter of the Sierra Club contacted the New York Department of Environmental Conservation, pointing ou that the air permit was being used in way not anticipated when it was issued to a company ostensibly generating electricity, not consuming it in ever-increasing amounts. They suggested that the upcoming application to renew the permit be rejected.
This action provoked an intense response from Bitcoin enthusiasts who almost religiously support Bitcoin's "proof of work" protocol to mining cryptocurrency. This method consumes more energy than others in use in the industry. It also got attention from the media and other activists, who surfaced similar operations in the US. Following a partial ban in the home of crypto mining, China, the operations migrated here. Most miners are plugging into power sources dedicated to their operations like Greenidge's. Most often these power sources are fueled with fossil fuels. In Kentucky, 70% are fueled by coal.
Despite massive lobbying from the miners, legislation was passed by the New York legislature in its final hours on June 3rd to impose a moratorium so the impact of crypto mining could be evaluated. The legislation would not help Seneca Lake, however because a operators with a permit application that predated the legislation like Greenridge's would be exempted. All was not lost. When their permit came up for renewal on June 30th, it was denied. Four thousand public comments had been submitted, 98% against. Greenridge still operates today pending appeal of the denial, and a pernicious new industry is born.