It’s Not Just Mining: Douglas County To Establish Blockchain Campus
TechnologyBit News Today2 min read
The honeymoon with cryptocurrency fortunes seems to have ended for many looking to make a fortune mining cryptocurrency, yet Douglas County officials are pushing ahead with a plan for a blockchain innovation campus. The proposed innovation campus forms part of Central Washington's wider strategy to manage the aftermath of the cryptocurrency boom that began affecting Douglas, Chelan, and Grant counties in 2014.
Central Washington features low-cost electricity, along with substantial high-speed computing power and crypto expertise developed during the bitcoin boom. Through 2017, soaring cryptocurrency prices led miners and investors from as far away as China to seek thousands of megawatts of electricity from public utility districts across the three counties. One megawatt suffices for powering 125 to 400 Central Washington homes, depending on the time of year.
But by early 2018, a steep drop in cryptocurrency prices ended the Central Washington bitcoin boom. Utility officials in Chelan and Grant counties ultimately raised power rates for incoming miners. In Grant County, power applications from prospective miners dropped from approximately 1,500 megawatts in August to 313.5 megawatts, according to Grant PUD representative Ryan Holterhoff.
Central Washington's inexpensive electricity drew mining interest during the cryptocurrency surge.
Douglas County, however, has charted a distinct approach. Consequently, while power requests have decreased, Douglas County continues to welcome new mining operations. In November, a $20 million mine by Bitmain, a large Chinese-based cryptocurrency company, opened in Douglas County near East Wenatchee. The facility, housing around 8,000 individual computers in five warehouses, will consume 12 megawatts of electricity according to the utility, enough for 1,500 to 4,800 homes.
Malachi Salcido, another local mining pioneer, noted that despite volatility, the sector has been instrumental.
Douglas County is even working to revive a closed mining venture that came to symbolize the region's cryptocurrency boom and bust. According to bankruptcy records, Gigawatt owed more than $310,000 to the Douglas County Public Utility District. Parks stated that the Port of Douglas County is also responsible for over $50,000.
Douglas County officials see their crypto-friendly stance as an opportunity for the rural community to leverage its cheap power and develop a data-driven, high-wage industry. Parks, an economic development official, pointed to nearby Quincy as a successful example, where massive tech data centers for Microsoft and other firms brought job growth along with a massive increase in sales and property taxes.
Meanwhile, the state Department of Commerce views cryptocurrency mining as a potential means to diversify rural economies. Evan Wendlandt, who serves as the department's business development manager, described the Bitmain facility as “a big win” for Douglas County.
Parks stated that the current cryptocurrency sector is what drives the next stage of blockchain technology.
Ron Cridlebaugh, who manages economic development for the Port of Douglas County, strongly believes blockchain will ultimately play a major role in standard computing. He foresees broad adoption: “We are all going to be consumers of blockchain technology in time,” he stated.
