Michigan, literally the Great Lakes State, is jumping into the deep end of the cryptocurrency and Web3 tech pool. Crypto mining operations are popping up all across the state. They can be as small as hobbyists tinkering in their basements or as great as industrial facilities using enough electricity to light up small cities. Lawmakers are going so far as to propose bills to promote this new digital gold rush. Before we start uncorking the champagne and celebrating Michigan becoming the next great crypto hub, let’s slow our roll. Are we really ready for the spillover effects?
We're being sold a dream of innovation and economic prosperity, but I fear we're overlooking some critical, and potentially devastating, risks. These aren't your run-of-the-mill concerns about Bitcoin's volatility; these are deeper, systemic issues that could impact every Michigander.
Energy Grid Strained Beyond Capacity
The second and most noticeable danger is the enormous energy use of crypto mining. We mean big honkin’ server farms, lined with processors that never stop chugging away solving complex equations to earn tiny fractions of a Bitcoin. And where does that energy come from? Too often, it's from fossil fuels, directly contradicting Michigan's commitments to reducing carbon emissions and combating climate change.
Think about that for a second. We’re making record investments in renewable energy, we’re leading the nation on electrifying our vehicle fleet and more — all in pursuit of a greener future. At the same time, we’re inviting an industry that has the potential to completely undo all of that work. It’s the equivalent of trying to fill a bathtub with the drain wide open.
It's more than just environmental impact. Our energy grid is already strained. We’ve experienced more and more outages while electricity prices continue to climb skyward. Allowing in huge new crypto mining operations will make all these issues worse. That would result in unaffordable bills for all and threaten the reliability of our power supply. Are we ready to put the reliability of our electricity grid at risk for the sake of an illusory digital gold rush? Are we ready to go back to rolling blackouts in peak summer months?
This isn't just about numbers on a spreadsheet. It's about the real-world impact on families and businesses. Imagine that Grandma is about to run out of power to her oxygen concentrator. It’s dead of winter and a new, local crypto mine is sucking up all the juice! Is that really the Michigan we want to create?
Water Resources Drained Dangerously Low
While everyone obsesses over the energy drain, a far more insidious threat lurks beneath the surface: water consumption. Because those massive server farms don’t just consume electricity, they become a major new demand for cooling. And a lot of it. Whether they’re fossil or nuclear, many of these facilities depend on water-intensive cooling systems, pulling hundreds of billions of gallons of water from our lakes and rivers.
Though we take them for granted, Michiganders are fortunate to have the Great Lakes as our natural resource. These lakes aren’t a limitless bathtub. Climate change is reducing water levels, already making flying more dangerous. All the while, increasing pressure from emerging sectors such as crypto mining threatens to catapult us into disaster.
The connection here is unexpected but crucial. We’re proud environmentalists who love the Great Lakes, and on our Good Jobs Rally at noon on Tuesday, we’ll be protecting them from pesticide pollution and overuse. Yet, we're considering welcoming an industry that could directly threaten their health and sustainability.
Consider the irony. We're spending millions on initiatives to restore wetlands and protect our waterways, while simultaneously greenlighting projects that could undo all that progress. So we are indeed just robbing Peter to pay Paul.
Community Disruption Lacking Real Benefit
Supporters of crypto mining typically point to the promise of new jobs and economic development. Make no mistake, these are short-term gains at best. First, crypto mining is an incredibly volatile and fickle industry. What happens when Bitcoin crashes (again)? What will happen when cleaner, more efficient mining technologies make these facilities obsolete?
In their wake, we’re often left with toxic server farms, contaminated land and a community that can’t afford to rebuild on faith alone. The jobs created tend to be low-wage and the skilled jobs that are created don’t necessarily go to local residents. The true winners are the out-of-state private equity investors who come in, loot profits and cash, and leave us the losers to deal with the fallout.
The surprising link in this case is to Michigan’s past. We've seen this movie before. Each time, we’ve pursued these industries, lured by the promise of immediate wealth and prosperity, only to be saddled with environmental devastation and economic despair. The automotive industry is the most clear immediate example, but so too were the lumber barons of the Gilded Age. So are we really doomed to repeat the same mistakes?
We need to ask ourselves: Are we truly building a sustainable future for Michigan, or are we simply chasing the latest get-rich-quick scheme? Are we prepared to continue paying the price by harming our environment and our communities? Can we afford to jeopardize our long-term economic prosperity for the temporary mirage of crypto-windfalls?
I very much encourage our lawmakers to pump the brakes. Before we roll out the red carpet to wholesale crypto mining, let’s engage in an honest dialogue about the downsides and unintended consequences. Let’s stand together and call for transparent, accountable, and strong regulatory frameworks that put the health of our environment, our communities, and our future first. These plays cannot be a gamble, the stakes are far too high.
