New York Could Possibly Ban Carbon Powered Bitcoin Mining—Here Is Everything You Need To Know

Bitcoin mining in New York could get challenging in the next few years.

Just recently, lawmakers in New York passed a bill that would prohibit the operations of bitcoin mining companies that consume non-renewable energy to power their proof-of-work. However, this bill has yet to be approved by Governor Kathy Hochul.

There is a little speculation about whether Governor Hochul would sign it or not or would opt to veto the bill. This is because she was reported to have recently received a $40,000 donation last month from an executive of a crypto mining facility in the city.

Bitcoin Mining in New York

According to Perianne Boring, founder of the Chamber of Digital Commerce, New York would become the first state in the US to ban blockchain technology infrastructure if Governor Hochult were to sign the bill into law.

Passing this bill would mean and result in numerous things for New York and across the United States. The United States is currently at the forefront of the global bitcoin mining industry.

The country is responsible for 38 percent of all miners in the globe. This comes after numerous mining operations migrated to the country after the implementation of new regulations in China the previous year. A handful moved because of the abundance of hydroelectricity in New York. In addition, the city also has tons of fossil fuel plants that can be converted to become cryptocurrency mining facilities.

As reported by The Verge, the measure would impose a two-year ban on specific cryptocurrency mining activities that make use of proof-of-work authentication methods to confirm blockchain transactions.

Bitcoin's electricity is generated through a process known as proof-of-work mining, which makes use of complex computing hardware and consumes a significant amount of electricity.

Bitcoin mining has always been known to consume an extensive amount of electricity.

Some critics are worried about the economic and financial effects of this bill on the city. Undeniably, these mining facilities have provided high-paying and high-grade jobs to local communities. In terms of when the bill would take effect, it would become operational as soon as the governor gave his approval.

Sustainable Energy for Mining

The bill for crypto mining came about as the legislators were convinced to stand firm in promoting renewable energy. Legislators who support the proposal say they want to reduce the state's overall carbon footprint. Through cracking down on mines that get their electricity from power stations that use fossil fuels.

If it is approved, for the next two years, proof-of-work mining companies will not be able to expand or renew permits, and new entrants will not be able to come online unless they switch to 100% renewable energy.

According to CNBC, apart from the ban, the bill also iterates to conduct a study in accordance with the provisions of the bill. This means conducting an environmental study on New York's ability to reach aggressive climate goals set under the Climate Leadership and Community Protection Act, which mandates an 85% cut in greenhouse gas emissions by 2050.

The data of the Chamber of Digital Commerce, the sustainable energy mix of the worldwide bitcoin mining business is now estimated to be just under 60 percent, and the sustainable power mix is closer to 80 percent for its members that mine in the state of New York.