Two bitcoin miners told Cryptooshala that if a bill banning Proof-of-Work mining for two years in New York becomes law, it will eventually trigger an exodus of mining companies from the state and do little to achieve the moratorium’s intended goals. .
GEM Mining CEO John Warren told Cryptooshala on June 8 that he and other miners now see New York as an unfriendly place where they probably won’t want to set up shop.
“The miners won’t think about going there after the ban is part of the discussion.”
Environmental sustainability has been at the center of the New York State government’s argument against Proof-of-Work (PoW) mining. The controversial Mining Prohibition Bill would ban any new mining operations in the state for the next two years. It will also deny license renewals to those already working in the state, unless it uses 100% renewable energy.
GEM Mining recently commented that the bill would not only fail its intended purpose, but would discourage new renewable energy miners from doing business in the state. Warren told Cryptooshala that his operations are already 97% carbon neutral.
“The regulatory environment in NYC will not only stop their target…but also likely discourage new renewable energy miners from doing business with the government…”
— GEM mining (@GEM_Mining) June 8, 2022
GEM Mining is a South Carolina-based bitcoin (BTC) mining operation that contributes 1.92 exahashes per second (EH/s) of hash power to the bitcoin network as of May.
Similarly, the CEO of Swedish digital asset mining company White Rock Management, Andy Long, also believes that bitcoin mining is “moving in the right direction towards energy without fossil fuels,” as he stated in an email comment to Cryptooshala.
The company boasts 100 percent reliance on hydroelectric power for its 712 petahash per second (PH/s) contribution.
Long reiterated the idea that a freeze on PoW mining “won’t have the intended effect and send the wrong signal.”
“We want more states and local governments to encourage investment rather than stifle growth with prescriptive rules that would probably be the thin end of the wedge.”
According to the Cambridge Bitcoin Electricity Consumption Index, roughly 10% of US computing power is in New York City.CBECI). This makes it the fourth largest producer in the country. As of April, miners indicated in a survey conducted by the Bitcoin Mining Council that about 58% of the energy used for mining comes from sustainable sources.
As New York goes, California goes
The bill, if passed, could see mining companies move out of New York to other states, just as miners left China in a hurry after the mining ban last year.
However, GEM Mining’s Warren believes that other states’ fees will continue to rise whether the moratorium goes into effect or not, adding that it probably won’t cause a domino effect from other bans, except that “as New York, so goes Cali.
He added that even if Governor Hochul signs the moratorium into law, “New York’s capacity will still fall as Kentucky, North Carolina, Texas and other states introduce new incentives for miners.”
“What you see across the country is bipartisan support for the mining industry and the jobs they provide. They also add stability to the power grid.”
Ready for competition
New York is already losing competition to miners in states such as Kentucky and Georgia. Georgia is the leading US state in terms of hash power. Luck informed miners may flock there in February due to below-average electricity costs and the ability to offset their emissions with revolving credits. Georgia produces 35.6% of electricity from nuclear and renewable sources.
Kentucky Gov. Andy Beshear signed into law the tax last March. stimulus for bitcoin miners who set up shop and help support the state’s nascent renewable energy infrastructure. Kentucky surpassed New York in hash power and finished third in the union, but produces only 6.6% of electricity comes from renewable sources.
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The controversial mining bill is currently on the table of New York Gov. Kathy Hochul, who has yet to sign it publicly. Instead, she noted that her team would be looking at the proposal “very carefully” over the next few months.
Credit : cointelegraph.com