Vladislav Sopov
New York State is taking a step closer to restricting proof-of-work mining technology
contents
- Bitcoin (BTC) mining in New York could be done on a loan basis
- Another Exodus of Crypto Miners?
New York could be the first US state to ban cryptocurrency mining due to environmental concerns. However, crypto analysts and enthusiasts believe that the carbon footprint of Bitcoin (BTC) mining is grossly overestimated.
Bitcoin (BTC) mining in New York could be done on a loan basis
According to CNBC’s MacKenzie Sigalos, the New York State Senate has approved a bill that would ban certain proof-of-work (PoW) cryptocurrency mining operations for two years.
So NY now regulates the contents of the data center and has banned some kind of calculation (sha-256 hash functions). You control directly what constitutes a valid use of power https://t.co/YQxxVUazVf
— nic carter (@nic__carter) June 3, 2022
If signed by Governor Kathy Hochul, it would prevent crypto miners from renewing existing mining equipment and adding new rigs unless they use 100% renewable energy. It would also impose a two-year moratorium on launching new crypto mining farms.
According to lawmakers, doing so would reduce New York’s economy’s reliance on power plants that burn fossil fuels, thereby curbing aggregate carbon emissions.
To sue
This initiative aligns with the Climate Leadership and Community Protection Act, which commits New York State to reduce greenhouse gas emissions by 85% by 2050.
Another Exodus of Crypto Miners?
CNBC highlights that high-profile cryptocurrency entrepreneurs and some experts have already criticized the possible ban on Bitcoin (BTC) mining. Perianne Boring, founder and president of the Chamber of Digital Commerce, claims that this would be dangerous for the US economy as a whole:
This is a major setback for the state and will stifle its future as a leader in technology and global financial services. More importantly, this decision will eliminate key union jobs and further disenfranchise financial access to the Empire State’s many underserved populations.
As previously reported by U.Today, the US has been the top destination for mining companies to migrate amid the Chinese crackdown on cryptocurrencies.
Since New York would be the first state to impose such draconian anti-bitcoin measures, it could set a “bad precedent” for other states and territories, Galaxy Digital’s Amando Fabiano told CNBC.
Industry insiders are also warning of the “domino effect” that a US mining ban will definitely increase the unemployment rate.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.