New York and China, same fight? – If the new mayor of New York City, Eric Adamsexpressed his desire to make the Big Apple a nerve center for cryptocurrenciesthings seem badly engaged. Indeed, at the level of the State of New York, the hour is rather to ban bitcoin mining (BTC).
BTC mining becomes undesirable in New York State
This is very bad news that has come to us fromNew York State Assembly this April 26, 2022. The lawmakers of this American state were to decide on a law Project who must impose two-year moratorium (minimum) on any project of mining of cryptocurrencies.
Or, le Bitcoin is of course the first of the cryptos to use this consensus by the proof of work (PoW), popularized as “mining”. It is even this validation process that makes it, in large part, a network decentralized, secureet censorship resistant.
Unfortunately, as the reports including Blockworks, the New York State Assembly has indeed valid (when voting “extremely tight”) this law project. The text must now be submitted to the vote of the Senate of State.
The pretext of ecological concerns outweighs job benefits
On the side of the supporters of this bill for New York, cryptocurrencies using Proof of Work are denounced as “harmful to the environment” and like “consuming too much energy”.
However, as rightly pointed out Kristin Smithexecutive director of the Blockchain Associationit will have negative impacts obvious in terms economic and D’jobs for the state. And this, without having a real impact on mining projects. In fact, these will refer simply to US states less hostile to Bitcoin (or even abroad).
“Even if New York closes the door to cryptocurrency mining, Proof of Work mining will not be banned in the rest of the United States. Rather, these operations will move elsewhere, generating well-paying jobs for citizens of other states. (…) This decision will jeopardize the progress of the crypto sector in New York, (…) and harm local communities that have already built jobs and economic stability around this area of activity. »
Kristin Smith, Executive Director of the Blockchain Association
We can only hope that the New York Senate listen to reasonand do not kill the crypto-mining sector in the state, because no project is likely to want wait 2 years for the end of this moratorium. We were also able to see what this gave in the very authoritarian China: a disaster for local mining playersbut huge fruitful opportunities for the rest of the world (the United States in the lead, precisely!).
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