Recently the news broke that New York lawmakers passed a bill which establishes a moratorium of two years on the granting of new permits to certain power plants powered by fossil fuels to mine bitcoins.
With this, it is contemplated that this measure allows the realization of a study on the environmental impact of mining facilities in the state and especially points to mining based on proof of work (PoW), which uses a large amount of energy to validate blockchain transactions.
And it is that some of the most popular tokens mined through proof of work include Bitcoin, Ethereum and Dogecoin. The other solution, Proof of Stake (PoS), is to use cryptocurrencies, such as ETH2.0 or Avalanche, to achieve the same result with less power, and is considered more efficient than Proof of Work.
The New York Bill it is an attempt by legislators to reduce the carbon footprint of the state and "mitigate the current and future effects of climate change". Lawmakers say proof-of-work cryptocurrencies are an environmental risk.
“Cryptocurrency mining that uses proof-of-work authentication methods to validate blockchain transactions is a growing industry in New York State. Continued expansion of operations will dramatically increase the amount of energy used in the state,” the bill says. The measure, which passed on a 36-27 vote in the state Senate early Friday, is now under consideration by New York State Governor Kathy Hochul. The state Assembly passed the bill last month.
The bill will undergo another test when sent to Governor Kathy Hochul. Hochul has 10 days to sign or veto the legislation. If the bill passes, it will be one of the largest restrictions in the United States on this energy-intensive process.
It is also a stark contrast to the policies of states like Texas and Georgia. These states use tax breaks and less restrictive regulations to encourage companies to offshore.
For a long time, New York has been considered an attractive location for mining business of cryptocurrencies due to cheap hydroelectric power sources. In recent years, companies have also repurposed old coal and gas-fired facilities. However, if Hochul signs the bill, any proof-of-work mining activity in the state that relies on burning fossil fuels will face a two-year ban.
However, proof-of-work mining companies using 100% renewable energy will still be allowed to operate. The companies that operate these facilities oppose the law and believe it will do more harm than good.
In addition, this project new york law comes after China introduced new restrictions on bitcoin mining last year. China has taken many steps against bitcoin since it decided to introduce its own electronic money, but for other reasons as well. Among other measures, Beijing has called for a severe crackdown on bitcoin mining and trading, triggering what the industry calls "the great mining migration."
This has forced cryptocurrency mining companies to move west, with the majority choosing to set up shop in the United States. New York, which has abundant hydroelectricity and decommissioned fossil fuel power plants that can be brought back online to mine bitcoins, has quickly become a new hub for bitcoin mining.
Some miners also chose Texas as their destination, where state leaders are supporters of bitcoin. The Texas market would also be an asset to miners due to its unregulated nature and favorable political position for cryptocurrencies.
Finally If you are interested in knowing more about it, you can check the details In the following link.