New York state moves one step closer to banning proof of work mining technology
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- Bitcoin (BTC) Mining in New York Could Happen on Borrowed Time
- Another crypto miner exodus?
New York may become the first US state to ban cryptocurrency mining due to environmental concerns. However, cryptocurrency analysts and enthusiasts believe that bitcoin[बीटीसी]The carbon footprint of mining has been greatly underestimated.
Bitcoin (BTC) Mining in New York Could Happen on Borrowed Time
According to CNBC’s Mackenzie Sigalos, the New York State Senate approved a bill that includes a two-year ban on certain cryptocurrency proof-of-work (PoW) mining operations.
So NY is now regulating the contents of the data center and has banned one type of computation (sha-256 hash function). They are directly controlling whether there is a legitimate use of power https://t.co/YQxxVUazVf
— Nick Carter (@nic__carter) 3 June 2022
Should it be signed by Governor Cathy Hochul, it will prevent crypto mining companies from renewing existing mining gear and adding new rigs until they use 100% renewable energy. Also, there will be a two-year moratorium on the launch of the new crypto mining farm.
According to lawmakers, this would reduce New York’s economy’s reliance on fossil fuel-burning power plants and, therefore, curb accumulated carbon emissions.
The initiative is aligned with the Climate Leadership and Community Protection Act, which requires New York State to cut greenhouse gas emissions by 85% by 2050.
Another crypto miner exodus?
CNBC highlights that heavyweight cryptocurrency entrepreneurs and some experts have already criticized a possible ban on bitcoin (BTC) mining. Perian Boring, founder and president of the Chamber of Digital Commerce, claims that this would be dangerous for the entire US economy:
This is a significant blow to the state and will affect its future as a leader in technology and global financial services. More importantly, the decision would eliminate vital union jobs and further deprive financial access to the many underbanked populations living in the Empire State.
As previously covered by U.Today, the US was the top destination for mining businesses to migrate amid Chinese crackdown on cryptocurrencies.
Since New York will be the first state to implement such drastic anti-Bitcoin measures, it could set a “bad precedent” for other states and territories, Galaxy Digital’s Amando Fabiano told CNBC.
At the same time, industry insiders are warning about the “domino effect” that US sanctions on mining will certainly increase the unemployment rate.