Valatie Falls Hydroelectric Dam, New York, is set to see a new life within cryptocurrency mining, after firm DPW Holdings Inc made a bid to purchase the aging dam in March 2018. This will see a new cryptocurrency mining branch open up within DPW Holdings, a brave move considering the falling profitability of cryptocurrency mining as a result of depleting values from currencies such as Bitcoin and Litecoin and of course, an increase in the price of energy and mining equipment.
Valatie Falls Hydroelectric Dam (better known as Valatie Falls Hydro) has the capacity to produce around 1,700 megawatt hours of power and operates along the Kinderhook Creek waterway.
If you’re interested, here’s a little description of how hydroelectricity generation works, by the USGS Water Science School:
“Hydroelectric and coal-fired power plants produce electricity in a similar way. In both cases a power source is used to turn a propeller-like piece called a turbine, which then turns a metal shaft in an electric generator, which is the motor that produces electricity. A coal-fired power plant uses steam to turn the turbine blades; whereas a hydroelectric plant uses falling water to turn the turbine. The results are the same. The theory is to build a dam on a large river that has a large drop in elevation. The dam stores lots of water behind it in the reservoir. Near the bottom of the dam wall there is the water intake. Gravity causes it to fall through the penstock inside the dam. At the end of the penstock there is a turbine propeller, which is turned by the moving water. The shaft from the turbine goes up into the generator, which produces the power. Power lines are connected to the generator that carry electricity to your home.”
In this instance, the dam is going to be used to generate power exclusively for a cryptocurrency mining farm owned by DPW Holdings. Energy costs will be next to nothing as the power produced will be free, however DPW Holdings are going to be responsible for ensuring the dam is maintained and working, which in itself will bring other associated costs.
According to CCN, Milton Todd Ault III, the CEO of DPW Holdings has commented on the acquisition of the dam, saying that:
“Our successful repurposing of Valatie Falls dam to provide clean, low-cost, renewable power to Super Crypto’s future co-located mining farm is another important step in our strategy to create an economically viable, self-sustaining cryptocurrency mining business. This project provided a unique opportunity for DPW subsidiaries to collaborate and innovate to create a new model for cryptocurrency mining, for which electricity is by far the largest operational cost factor.”
This isn’t the first time such technology has been used to provide power for cryptocurrency mining and indeed, it won’t be the last. It does however provide a great example of how cryptocurrency mining can indeed be carried out using clean and green energy, moreover though, this is an example of how blockchain technology can be used to repurpose other dying technologies. Without this acquisition, the future of the Valatie Falls Hydroelectric would have been uncertain and could have led to the decommissioning of the dam, therefore on a wider scale this will improve job prospects in the area and keep this iconic location active and running within a prosperous future.