Bitcoin Costs more than Electricity Bills!! Washington Miners are Face palming

Bitcoin

Bitcoin

This time, Washington increased the hydroelectric power rate by 29% more for Bitcoin miners

Bitcoin is a cryptocurrency that is traded for goods or services as payment. Bitcoin mining is the process of verifying new transactions to the Bitcoin digital currency system, as well as the process by which new bitcoin enter into circulation. When a bitcoin is successfully mined, the miner receives a predetermined amount of bitcoin. This time, the state of Washington announced a significant price increase of 29% more that could make many Bitcoin miners consider moving to another state or even country.

Bitcoin mining is about to become way harder for US-based miners, not because of the automatic difficulty adjustments but because of local politicians. When crypto miners come to town, local residents and small businesses pay a price in surging electricity rates. One of the 39 counties in Washington, Chelan County announced the implementation of a new energy tariff for Bitcoin miners to access hydroelectric power for Bitcoin Mining F has now gone up by 29%. This move has actually moved the mining companies from the usual charging schedule of ‘high-density’ to a newly created schedule, known as Rate 36, especially for cryptocurrency miners.

 

Electricity rates increase 30% for bitcoin miners in Washington:

As Bitcoin mining operations require more high degree of electricity than any other consumers. Bitcoin miners started switching from thermal energy to hydroelectric power to reduce carbon emissions. County Public Utility District (PUD) Commissioners have approved a bill this week to charge Bitcoin miners. This new pricing regime is a part of the Rate Schedule 36 a category called ‘Cryptocurrency Rate Schedule’.

This newly introduced High-Density Load Rate, Tariff 36, says that mining companies will have to pay a higher rate than all customers because their electricity consumption is much higher than the standard rate. The state may no longer be so much of a cool spot for Bitcoin mining. Changing the rates for Bitcoin miners businesses is technically fair as they surf large quantities of the electric power and so will pay higher rates.

According to some reports, the new tariff 36 should have come into effect in early 2022; however, possibly due to all the new rules and regulations being implemented in the country. Although Chelan County claims that Rate tariff 36 has not been created specifically for Bitcoin miners, it certainly looks like a move to discourage their Bitcoin mining operations. Bitcoin miners cannot seem to catch a break as a rule after the rule has been introduced to impede Bitcoin mining operations.

However, it quickly became a problem for the county due to the amount of electricity needed by the miners. There is currently no way to calculate the exact amount of used energy for mining Bitcoin. After the tariff 36 is implemented, Chelan miners can continue to operate with peace of mind paying a little more than before. This process itself is expected to take anywhere between 2 to 3 years.