News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
A potential bitcoin mining facility could bring a positive economic impact to a small community like Van Buren County.
That’s according to Tennessee Tech Department Chair for Economics, Finance, and Marketing Wesley Pech. Pech said there are potential benefits including increased demand for skilled workers, increased tax revenue, and increased demand for local goods and services.
As for negatives, “So bitcoin mining requires a lot of electricity to power the equipment,” Pech said. “This can potentially place a strain on the local power grid and result in increased energy costs for residents and businesses in the area.”
Pech said he thought the most important negative aspect of bitcoin mining is the volatility.
“These operations are subject to the fluctuations in bitcoin which as we know has been quite volatile recently,” Pech said. “So my guess is that their profits will be quite unpredictable.
Pech said each potential benefit and cost requires further consideration. He said job creation is likely because bitcoin requires workers to maintain equipment drawing constantly on computational power. However, Pech said whether those workers are provided locally depends on adequate human capital in the area.
Pech said other concerns include the effect of competition for resources such as land, electricity and workers in the area. He said the county should consider whether upgrades and improvements to the infrastructure are necessary.
“I would also pay attention to the impact on the community,” Pech said. “Which can be positive or negative. In terms of noise, increased traffic. Although my guess is that’s not going to be a problem considering the size of the community.”
Pech said that the fact that the company is not a local one adds to additional concerns such as lack of local investment since the owners are not involved of the community. Additionally, Pech said if the owners are not present in the community it might be difficult to hold them accountable for any negative impacts of the mining operation.
