NewsletterSatoshi vs. the State of Idaho: Discrimination Against Bitcoin Mining?
The Satoshi Action Fund is taking a major stand against the state of Idaho. Dennis Porter, the CEO & co-founder of Satoshi Action Fund has claimed that the Public Utility Commission of Idaho is discriminating against Bitcoin mining.
The Idaho Public Utilities Commission approved a special rate for Bitcoin mining companies and cryptocurrency facilities. However, GeoBitmine, a mining company based in Idaho has labeled that the new rate is discriminatory against the company.
Why Idaho Could Be Discriminatory Against Bitcoin
Satoshi Action Fund has leveled that the Idaho Public Utilities Commission is trying to set a precedent. The precedent will allow the commission to discriminate against the legal use of electricity by GeoBitmine. They have argued that GeoBitmine and other Proof-of-work miners are data center businesses.
They have compared bitcoin mining companies to big-tech companies like Google and Amazon in this regard. Moreover, they have also argued that Bitcoin mining companies like GeoBitmine are also providing recycled heat for agriculture and farming uses in Idaho.
According to the Fund, if a company like GeoBitmine is forced to operate under the newly created Schedule 20, the company would be unable to make any profits. They also believe that the operation might even cease to exist.
The rate included certain harsh provisions like the possibility of up to 225 hours per year power cut. The commission also has an unfettered discretion over which companies must accept the rate. Moreover, the same accusations were made by the company itself.
The Public Utility Commission believes that the volatility in load and the lack of financial viability are some of the reasons why companies like GeoBitmine have a different rates. However, the company fired back stating that it needs an year-round reliable source of electricity to function properly.
The Debate Against Bitcoin Mining
The debate against Bitcoin Mining is not a new one. The Proof-of-work mechanism in Bitcoin mining uses a huge amount of energy. However, crypto experts have labeled that Bitcoin mining is one of the most efficient and clean industries in the world.
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