The Senate of the US state of New York today has a new bill approved, effectively banning new proof-of-work mining installations is announced. Any new mining operations that rely on fossil fuels for their energy supplies will not be welcome in New York for two years. Existing mining installations will still be allowed to operate.
Proof-of-work bitcoin mining
The bill has everything to do with the impact that proof-of-work mining has on the climate. Crypto networks that run this way, including the Bitcoin (BTC) network and for now also the Ethereum (ETH) network, consume an enormous amount of energy. Not surprisingly, this is a major thorn in the side for governments around the world.
The New York Senate voted by a large majority in favor of the bill that was successfully passed by the New York Assembly earlier in April. State legislators have been trying to ban for more than a year proof-of-work mining making it a reality and the Senate green light is an important step in the right direction for proponents of the law.
Resistance from crypto community
However, the opposition is also very great. The opposition argues that a ban on mining could potentially kill innovation in New York. Crypto mining companies will be chased away in this way where the crypto industry in New York can hardly get a foothold.
Also Michael Saylor, CEO of MicroStrategy, spoke out against the bill a while back. According to him, this would be hugely damaging to New York’s reputation and economy.
“The proposed regulation of Bitcoin energy use in New York is harmful to the environment, reputation & economy of NY and shows that the law can be maliciously manipulated to harm a competitor. If this bothers you, please let the NY Senate know.”
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