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Home»Technology»Kentucky’s Bitcoin Growth Has Gone Bust
Technology

Kentucky’s Bitcoin Growth Has Gone Bust

DaneBy DaneMay 24, 2025Updated:May 24, 2025No Comments4 Mins Read
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Her skepticism is rooted in lived expertise: In October 2000, a large coal slurry spill from a mine web site upstream poisoned the Coldwater Fork stream, which runs behind her home. Individuals in Inez couldn’t drink water from the faucet for months.

“These of us residing downstream did not hear about it for some time, however the college system needed to shut down for a couple of week till they received an alternate water supply,” she says.

To this present day, many in Inez nonetheless don’t belief the faucet water.

So when McCoy hears the hype about AI, she hears one thing else: one other promise that comes with a value. “We’ve allowed these individuals to be referred to as job creators,” she mentioned. “And I don’t care if it’s AI or crypto or no matter, we bow all the way down to them and allow them to inform us what they’re going to do to our group as a result of they’re job creators. They’re not job creators, they’re revenue makers.”

And the revenue leaves a footprint.

AI knowledge facilities demand staggering quantities of vitality—a ChatGPT search makes use of as much as 10 occasions extra vitality than a daily Google one—they usually run scorching. To maintain them cool, these services eat billions of gallons of water yearly. Most of that evaporates, however residents are cautious as a result of they’ve had issues with services and their runoff previously, so that they fear these new services may have an effect on fish and disrupt the land. The very issues the residents of Kentucky hope to protect.

Nonetheless, some locals see potential, even progress.

“AI is in every little thing that we do,” mentioned Wes Hamilton, an area entrepreneur who did his fair proportion of crypto mining in Kentucky in its heyday. “Siri, ChatGPT, robotics—every little thing you’ll be able to think about has to have AI,” he mentioned. “Bitcoin is a one-trick pony. You create it. The one person who will get paid is the proprietor of the machines.”

Hamilton claims there’s a path ahead the place knowledge facilities herald buyers, engineers, perhaps even corporations keen to remain. All of the AI individuals on the planet can be steaming into Kentucky, Hamilton says. And whereas he admits to dropping a fortune in crypto ventures previously, he claims that is completely different.

When Bitcoin first arrived, lawmakers supplied beneficiant tax breaks to lure miners. Firms investing greater than $1 million have been exempted from paying gross sales taxes on {hardware} and electrical energy. After which, in March 2025, Kentucky governor Andy Beshear took all that and went a step additional by signing a “Bitcoin Rights” invoice into regulation.

The laws, solid as a protection of private monetary freedom, is designed to enshrine the precise to make use of digital property in Kentucky. An earlier draft went additional, aiming to bar native governments from utilizing zoning legal guidelines to limit crypto mining operations—a provision that drew resistance from environmental teams. That language was finally tempered, however the intent stays: to sign that, in Kentucky, digital extraction can maintain buzzing.

Which is why we discovered ourselves exterior this facility in Campton, watching this semicircle of metallic buildings nestled within the timber. The mines run all night time and all day, even Sundays. And the query some are asking now, with bitcoin hovering round $100,000 and huge miners speaking about pivoting to AI, is whether or not bitcoin mining will get a second wind in Kentucky.

Mohawk’s bitcoin mining could even make a comeback. Anna Whites mentioned the events are supposed to enter arbitration Might twelfth. “I’m hopeful,” she instructed us. “I’m very hopeful that they sit down and say, ‘Mighty good plant you will have there. Let’s simply go forward and switch it on.’”

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