New York decided to create a pioneering law. And it directly affects the cryptocurrency world. Governor Kathy Hochul approved the ban on Bitcoin mining, blocking the issuance of new permits. This is the first of its kind in the United States and is a direct reminder of China’s decision to ban mining. However, there is an important difference.
Cutting the buds of the energy problem of mining. Bitcoin mining consumes at alarming levels. A recent study in the journal Nature determined that this mining is more polluting than oil extraction and at similar levels to natural gas or coal. He decided to take action from New York to block this practice.
For the next two years, only mining based on 100% renewable energy will be allowed in New York.
It comes at a difficult time for cryptocurrencies. As a result of FTX’s decline, the cryptocurrency industry is experiencing one of its toughest moments and trust is at its lowest. The two-year moratorium affects proof-of-work mining on which Bitcoin or Ethereum is based.
“A dangerous precedent.” The Digital Chamber of Commerce said in a statement that this decision “will set a dangerous precedent for determining who can and cannot use energy.” A ban that limits the activities of many miners who see this law as a restriction on their freedom.
Some companies, such as GEM Mining, point out that this new legislation will not only affect PoW mining, but will “deter new miners based on renewable energies as they may not want to do business in an environment hostile to mining”. and possible more restrictive regulatory developments”.
Mining is dead. Long live mining! The huge environmental impact of mining is undoubted. And the first consciousness is the miners themselves. Therefore, for some time, ‘Proof-of-Work’ mining has declined and ‘Proof-of-Stake’ mining, where users are rewarded not for their work, but for “immobilized” cryptocurrencies, has started to rise strongly. . With this ‘staking’ system, the consumption debate is radically changing.
We’ll see if other cities in the United States are encouraged to enforce similar laws. What seems clear is that more traditional Bitcoin mining times are disappearing.
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