OM in the News: Going Crazy with Bitcoin Mining

Cryptocurrency mining requires a lot of resources both in terms of computing power and electricity

The city of Sherbrooke, Quebec, east of Montreal, got a big revenue lift when it welcomed Bitfarms, a company that makes cryptocurrencies. The 500 people who neighbor the company’s computer center got something else: an inescapable drone that is driving many of them crazy. “It’s comparable to torture,”  said a city councilor.

Bitfarms makes money by using high powered computers to generate the digital currency bitcoins, explains The Wall Street Journal (Nov. 13-14, 2021). Miners compete to add transactions to bitcoin’s ledger by finding numbers that satisfy a formula; the first to do so are rewarded with new coins. There’s no shortcut, so miners with fast computers—and lots of them— to sift though the possibilities have an edge.

The powerful computers must be cooled by an array of fans. Their whirring noise has left residents who live near cryptocurrency operations in Quebec, Georgia, Montana and other places agitated and frazzled. Some compare it to a giant dentist’s drill, others to a fleet of helicopters in the backyard. “I wear earplugs inside my own house,” said one resident after bitcoin company Blockstream opened in her town of Adel, Ga. She can no longer sit on her porch. She says the noise sounds like 1,000 hair dryers. She has measured the sound levels at 70 decibels from her front porch, as loud as a vacuum cleaner. Indoors, sound levels measured more than 53 decibels, as loud as a dishwasher. The noise has persisted despite the layers of insulation that she put up at a cost of $7,000.

The mining companies say they are putting in quieter equipment and adding sound barriers around the plants. Under a deal with Adel, Blockstream must keep the sound levels 500 feet from the facility’s property line at 60 decibels or below. Blockstream plans to build a 15- foot-high berm to dampen the sound.

As the price and popularity of cryptocurrencies increases, more mines are popping up. Officials in Montana passed new zoning rules that would restrict how much noise and vibration businesses can create. The city of Plattsburgh, N.Y., passed a noise ordinance to deal with bitcoin mines. But the issue isn’t just the level of sound. It is also the frequency, measured by its ability to irritate. The mines resemble the whine of an airplane engine revving up on the tarmac.

Classroom discussion questions:

  1. We deal with the issue of work environments’ sound levels in Figure 10.4(b) in your text. Where does Blockstream fall on the decibel levels?
  2. What are the OM issues facing crypto mining farms?

OM in the News: The Danger of Workplace Noise

A study links hearing and work-related injuries
A study links hearing and work-related injuries

Extremely loud noise on the job, as well as hearing loss from noise exposure, may cause workers to miss danger warnings, reports Newsmax Health (April 3, 2014). Workers regularly exposed to noise levels of 100 decibels – about the volume standing next to a lawnmower – have more than doubled risk of being hospitalized for a workplace injury. Workers with hearing loss were also more likely to be seriously hurt.

“Noise induced hearing loss is a public health issue – in the US, up to 30 million workers are exposed to noise,” said a Canadian researcher. “From an occupational safety perspective, work-related injuries remain an important issue that generates significant costs for businesses, workers and compensation organizations.” Exposure to high noise levels increases fatigue, decreases the ability to concentrate and impairs the quality of communication between workers.
Both noise and noise-induced hearing loss could be involved in the occurrence of accidents. For every decibel of hearing loss, the risk of hospitalization due to work-related injury increased by 1 percent. Workers exposed to noise levels above 100 decibels had 2.4 times the risk of being hospitalized for work-related injuries compared to workers not exposed to loud noise. Workers with the combination of severe hearing loss and working in an environment where noise exposure is overly intense the risk of being hospitalized with a work-related injury is 3.6 times that of workers with neither factor.
Workers who can’t hear properly, either because of hearing loss or wearing hearing protection that’s too strong, might miss important communications and signals on the job. One thing that might help is if workers and supervisors devise special safety signals that don’t rely as much on hearing.
Classroom discussion questions:
1. What levels of noise are students exposed to daily? Refer to Figure 10.4b in Chapter 10.
2. How can an operations manager protect employees?