New York state is considering a bill to ban fossil fuel-powered bitcoin mining for at least three years. At the time of writing, 45 of the 150 councilors are in favor of a ban. As soon as more than half is in favour, the proposal ends up with the mayor.
Interestingly, Eric Adams, the mayor of New York during his campaign profiled himself as a “Bitcoiner” and even received parts of his salary in bitcoin. Although that seems mainly marketing, because Adams has also spoken negatively about the climate impact of bitcoin mining.
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3-year ban and industry analysis
So the idea of the bill is to ban proof-of-work mining for three years and then do research on the impact on the climate. The joke is that the bitcoin mining industry is extremely complex and in many cases also proves to be one of the greenest industries in the world.
For example, by using energy that the market does not need or by using gas that is normally flared. In that sense, it is very difficult to say what the exact climate footprint of bitcoin is. It remains to be seen whether this should be the main point of discussion.
It would be fairer to compare the added value of bitcoin for society, a form of money that you can rely on, against the energy consumption.
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According to Anna Kelles, who is trying to find support for the proposal within the council meeting, the investigation should show whether an absolute ban is necessary after the preliminary ban of 3 years. “If necessary to prevent the industry from stopping us from achieving the climate goals,” Kelles said.
So far relatively little support for the bill
So far, the council has struggled to get the proposal through. Every vote has to be fought for and with 45 out of 150 votes in favour, it still has a long way to go. It is therefore hoped that there are enough people on the council with common sense.
It would be much better to do good research in the coming months or years before you decide to crush an entire industry. Especially since there are plenty of examples that bitcoin mining can also be done in a green way.
If there is a ban, it would be good to make a distinction between different ways of mining. If miners can demonstrate that, for example, they only use excess green energy or gas that is normally flared, then that seems to be a plus for New York’s climate goals.
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