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Bitcoin Miners Say NY Ban Will Be Ineffective & 'Isolate' The State
Miners feel that the New York legislature’s efforts to get Bitcoin miners out of their state will backfire in the long run as other states invite miners to help improve their energy grid.
Himanshu S.
5:55 10th Jun, 2022
Bitcoin

Two Bitcoin miners have told that if the bill banning Proof-of-Work mining for two years in New York becomes law, it would end up triggering an exodus of mining companies from the state and do little to address the intended goals of the moratorium.

GEM Mining CEO John Warren told Cointelegraph on June 8 that he and other miners now view New York as an unfriendly place where they likely would not want to open up shop.

“Miners won’t consider going there after the ban became part of the discussion.”

Environmental sustainability has been at the heart of the New York state government’s argument against Proof-of-Work (PoW) mining. The controversial mining ban bill would prohibit any new mining operations in the state for the next two years. It would also refuse the renewal of licenses to those who are already operating in the state unless it uses 100% renewable energy.

GEM Mining recently commented that the bill will not only miss its intended target but also discourage new, renewable-based miners from doing business in the state.

GEM Mining is a South Carolina-based Bitcoin (BTC) mining operation that contributes 1.92 Exahash per second (EH/s) of hash power to the Bitcoin network as of May.

Similarly, the CEO of Sweden-based White Rock Management digital asset miner Andy Long also feels that Bitcoin mining is “moving in the right direction toward fossil-free energy use,” as he stated in emailed comments to Cointelegraph.

The company boasts 100% dependence on hydroelectric power for its 712 Petahash per second (PH/s) hash power contribution.

Long echoed the idea that the PoW mining freeze “would not have the intended effect and sends the wrong message.”

“We want to see more states and local governments encourage investment rather than stifle growth with prescriptive regulations that would likely be the thin end of the wedge.”

Roughly 10% of the US's hashing power comes from New York according to the Cambridge Bitcoin Electricity Consumption Index (CBECI). This makes it the fourth-biggest producer in the country. As of April, miners indicated in a survey with the Bitcoin Mining Council that about 58% of the energy used for mining is from sustainable sources.

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