New York has all but outright banned Crypto Mining after Governor Kathy Hochul signed a moratorium on cryptocurrency mining into state law.
This marks the first time in United States history that a state has banned cryptocurrency mining.
The focus of this legislation is on Proof-of-Work mining and the controversies over its high amount of energy consumption
What this essentially means is that any new mining operations, that aren’t based on 100% renewable energy, will be prohibited from New York state.
Also, currently approved mining operations in New York will no longer be allowed to renew their license.
Here is the official Memorandum announcing the Approval of the new law:
In my opinion, this is just nonsense.
The Bitcoin Mining Council released a report, back in March, estimating the global mining industry’s sustainable electricity mix is now at least 58.4%.
This figure also increased from 36.8% in 2021; a 59% increase in just one year.
Clearly, sustainable energy usage is an important issue, but the data shows that Crypto Mining companies are rapidly addressing these issues.
"To date, no other industry in the state has been sidelined like this for its energy usage. This is a dangerous precedent to set in determining who may or may not use power. The state’s argument the mining industry’s energy use is exponentially beyond other industries is blatantly false." - Chamber of Digital Commerce
Many expect that the remaining Crypto Mining companies will move on to greener and friendlier pastures.
I do not blame them as the state clearly does not want them there, and continues to use them as a scapegoat for "environmental" issues.
Better to move to more crypto-friendly states or countries and grow your industry there.
What do you guys think about this?
Is New York making a big mistake?
Or are they justified?
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