Saturday, June 10, 2023

NY’s Bitcoin Ban can Alienate the Country


Bitcoin miners inform Cointelegraph that if the law prohibiting Proof-of-Work mining in New York for two years becomes official, it will result in an outflow of mining businesses. This will leave the state while doing little to fulfill the moratorium’s ostensible objectives.

On June 8, GEM Mining CEO John Warren tells Cointelegraph that he and fellow miners currently see New York as having an unpleasant atmosphere. Accordingly, they can no longer set up a business.

The New York federal government’s case regarding Proof-of-Work mining is focusing on environmental integrity. For the next two years, the contentious mining prohibition measure would prevent any new mining activities in the state. It would also prohibit extending licenses for existing businesses in the state unless they utilize 100% sustainable energy.

GEM Mining states that the measure will not only fall short of its original goal. Nevertheless, it will also deter newer renewable miners from establishing the business in the state. According to Warren, his company is already 97% carbon neutral. GEM Mining is indeed a BTC mining company in South Carolina that delivers 1.92 EH/s of hash power towards the Bitcoin system as of May.

Bitcoin Mining is Progressing in the Positive Way

Conversely, Andy Long, CEO of crypto asset miner White Rock Management, believes that Bitcoin mining is going in the correct direction and is approaching fossil-free energy utilization. As per the Cambridge Bitcoin Electricity Consumption Report, New York accounts for around 10% of the US’s hashing power. This places it as the country’s fourth-largest producer. According to the Bitcoin Mining Council in April, they use around 58% of mining comes from sustainable origins.

If they will implement the law, it might cause a rush of mining companies to leave New York for other states. This is similar to how miners abandoned China after the country stops mining last year.

Meanwhile, GEM Mining’s Warren anticipates that donations from other states will continue to rise regardless of whether they will implement the ban. Furthermore, other bans would most likely not follow suit, unless, as New York goes, Cali goes.

Taking on the Competitors

For miners, New York is currently losing ground to places like Kentucky and Georgia. Georgia is the #1 hash power region in the United States. According to Fortune, miners may be migrating because of the lower-than-average cost of power and the ability to mitigate their footprints with renewable credits. Georgia gets 35.6 percent of its power from nuclear as well as sustainable sources.

Kentucky Governor Andy Beshear enacts a tax benefit for Bitcoin miners that establishes the business. It also includes those who help assist fund the state’s developing renewable power network in legislation last March. Kentucky overcomes New York for the third position in the union. However, it only generates 6.6% of its energy from sustainable sources.

The contentious mining measure is presently on the desk of New York Governor Kathy Hochul. Thus, she agrees to officially sign it. Rather, she stated that her staff will be reviewing the plan extremely thoroughly over the next three months.

Rainy Naidoo
Rainy Naidoo
Rainy Naidoo is a writer for Cryptoconstellation. She has her Degree in Journalism and communications. Rainy Likes to spend her free time reading and exploring new places.

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