Community outraged after closed power plant reopens with dangerous new use: 'It's time to have a national conversation'

Crypto mining has sparked outrage in a small New York community near Seneca Lake.

The effects led Yvonne Taylor, founder of the nonprofit Seneca Lake Guardian, to warn, "It's time to have a national conversation about the true cost of crypto mining," per City Magazine. 

What is crypto mining?

Crypto mining is how cryptocurrency transactions get verified. Essentially, powerful computers solve math problems to keep the network secure and so miners can earn rewards.

This system, called "proof-of-work," burns enormous amounts of energy, and that's where the backlash begins.

In Dresden, New York, a former gas plant was brought back to life by Greenidge Generation to power a crypto mining operation. The company says it helps the economy. However, locals say it's affecting their air, lake, and future.

Why crypto mining matters now

Crypto mining uses up to 2.3% of all U.S. electricity, according to a preliminary estimate from the U.S. Energy Information Administration. That number could hit 8% by 2030, per City Magazine.

The publication noted Greenidge alone uses over 15 megawatts, also taking up to 139 million gallons of water daily from Seneca Lake, according to the New York State Department of Environmental Conservation.

Water is released back to the lake at temperatures as high as 108 degrees Fahrenheit, and that appears to be contributing to toxic algae blooms that threaten wildlife and recreation opportunities.

"The northwest quadrant of Seneca Lake, where Greenidge is located, had the highest incidence of harmful algae blooms last summer," Taylor said, per City Magazine. "This is not just a New York State or Finger Lakes issue. Communities across the country are dealing with the same problems — air, noise, and water pollution."

How crypto mining affects people and the environment

To many in Dresden, Greenidge isn't reviving the community. It's squeezing it.

Do you think your city has good air quality? Definitely 🥰 Somewhat 😮‍💨 Depends on the time of year 😷 Not at all 🤢 Click your choice to see results and speak your mind.

The company says it creates jobs and adds value, but residents say those benefits are overstated and short-lived. Tourism is a major economic driver in the Finger Lakes, and locals worry that polluted air, noisy operations, and algae-choked water could turn visitors away.

The people who live there are dealing with the uncertainty about their health and property values. Many feel they're left cleaning up after an operation that's more interested in short-term profits than long-term stewardship.

Bill Roege of the Seneca Lake Pure Waters Association put it plainly to City Magazine: "The company reaps the rewards, not the community." 

Where clean energy fits into the picture

Some crypto mining companies use renewable power. For example, Mara Holdings in Texas uses wind, while Genesis Mining moved to Iceland, where it can use hydroelectric and geothermal power, per the Guardian and City Magazine.

But Greenidge still burns natural gas, spewing harmful pollution into the atmosphere. It also has said it is carbon neutral thanks to offsets, but that's a tactic environmental groups don't trust.

Cristiano Bellavitis, a Syracuse University professor, cautioned in the City Magazine report: "When the market crashes, these operations often scale back or shut down, leaving behind empty buildings and unmet local obligations."

As digital money spreads, Dresden is asking a bigger question: Who's really paying for it?

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.