When it opens in August, a new crypto mining plant in Fayetteville will be among the city’s top ten power users. The Public Works Commission of Fayetteville claims that the new project will generate money without increasing electricity demand during peak hours. A financial expert from Duke University advises against ‘deal with the devil.’
Plan C Crypto, based in California, will run a 20,000-square-foot industrial facility near the Fayetteville Regional Airport. According to the corporation and the Fayetteville Public Works Commission, it will run at 5,000 kilowatts.
On the electrical front, the facility joins PWC’s biggest clients like Cape Fear Valley Medical, Fayetteville State and Walmart. The facility’s electricity use puts it in the company of some of PWC’s top customers, including Cape Fear Valley Medical Center, Fayetteville State University, Fayetteville Technical Community College, and Walmart.
Many critics believe the industry’s huge carbon emissions are inefficient, leading to global warming and climate change.
One of the critics of the business model is Duke University academic Lee Reiners. He studies financial innovations like cryptocurrency. Cryptocurrency, he says, doesn’t do very much for the economy. Anything that is part of the process won’t help. Waste of time: The way he thinks about cryptocurrency is that way. There’s nothing there.
Demanding for Power: Cryptocurrency
Cryptocurrencies like Ethereum and Bitcoin don’t work through traditional financial institutions, which verify money transactions and other things. Instead, they work outside of this structure.
A process called proof of work makes sure that transactions in the crypto world are real. This means that there is no need for a centralized bank.
When a lot of computers on the network agree on a transaction, it is added to a public ledger called the blockchain. This process is called mining.
There is a way to make sure everyone has a copy of the ledger, Reiners said. This is through mining. People who mine are paid for their work, Reiners said, because they get a certain amount of bitcoin or another cryptocurrency for participating in the verification process.
He said that you need to pay people to do this mining, because if someone had 51% of the computing power on the blockchain network, they could write anything they wanted on the ledger. So, you charge a fee, and you charge that fee in the form of how much electricity you use. In this math problem, you have to figure out how to solve it.
A report from the New York Times last year said that each year, the collective process of verifying Bitcoin transactions uses more energy than the whole country of Finland. It’s seven times more than all of Google’s global operations, so it’s a lot bigger.
Crypto’s Future is not Certain
The FCEDC indicated in a press release announcing Plan C Crypto’s arrival in Cumberland that cryptocurrency will grow by over 100% by 2028. Reiners does not anticipate that there will be a lot of growth. They believe they will be able to resell it for a higher price later.
In his opinion, it’s all a bubble, because it’s all about how much someone else is willing to pay for a thing. The New York Times stated that crypto miners may get cheap carbon-based power in upstate New York. Reiners said it’s not a surprise if the Fayetteville plant closed after five years.
Fayetteville PWC CEO Elaina Ball said that because Plan C Crypto will buy a lot of power, it will make money.
Ball said it does not matter if the company does not work out. Because they know various communities have different perspectives on the sector, that’s fine with them. It’s good because they wear the hat of what’s best for our community, and this is a good thing.
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