It's an interesting move and I like how the city is taking them up on the offer. It doesn't really look like the city will lose much and the period in which they mine isn't that long. If it proves to be profitable, I can see other cities following along.
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I dont see the downside either.
There is only the electricity costs. I wish there were more details about the potential. Personally I am not sure older mining equipment will get much Bitcoin but I dont know enough about the ins and outs of it to pay attention.
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