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

    GizmoHome CollectiveBy GizmoHome CollectiveMay 28, 202504 Mins Read
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    Her skepticism is rooted in lived expertise: In October 2000, a large coal slurry spill from a mine website upstream poisoned the Coldwater Fork stream, which runs behind her home. Folks in Inez couldn’t drink water from the faucet for months.

    “These of us dwelling downstream did not hear about it for some time, however the faculty system needed to shut down for a couple of week till they obtained 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 folks to be known as job creators,” she stated. “And I don’t care if it’s AI or crypto or no matter, we bow right 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 data centers demand staggering amounts of energy—a ChatGPT search makes use of as much as 10 occasions extra vitality than an everyday Google one—and so they run sizzling. 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 up to now, so that they fear these new services might 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,” stated 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 possibly can think about has to have AI,” he stated. “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 information facilities herald traders, engineers, perhaps even corporations keen to remain. All of the AI folks on this planet could be steaming into Kentucky, Hamilton says. And whereas he admits to dropping a fortune in crypto ventures up to now, he claims that is totally different.

    When Bitcoin first arrived, lawmakers supplied beneficiant tax breaks to lure miners. Firms investing greater than $1 million had 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 legislation.

    The laws, solid as a protection of private monetary freedom, is designed to enshrine the fitting to make use of digital belongings 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 ultimately tempered, however the intent stays: to sign that, in Kentucky, digital extraction can hold buzzing.

    Which is why we discovered ourselves exterior this facility in Campton, watching this semicircle of metallic buildings nestled within the bushes. The mines run all evening and all day, even Sundays. And the query some are asking now, with bitcoin hovering round $100,000 and big miners talking 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 stated the events are supposed to enter arbitration Might twelfth. “I’m hopeful,” she informed 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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