Bitcoin miners say NY ban will be ineffective and ‘isolate’ the state

189
SHARES
1.5k
VIEWS


Two bitcoin miners have told Cointelegraph that if a bill banning proof-of-work mining in New York for two years becomes law, it would end the exodus of mining companies from the state and meet the intended goals of the moratorium. Will do little to accomplish. ,

GEM Mining CEO John Warren told Cointelegraph on June 8 that he and other miners now see New York as an unfriendly place where they probably wouldn’t want to open up shop.

READ ALSO

“The miners will not consider moving after the ban is 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 will ban any new mining operation in the state for the next two years. It will also refuse renewal of licenses to those who are already working in the state unless it uses 100% renewable energy.

GEM Mining recently commented that the bill would not only miss its intended target but would discourage new, renewable-based miners from doing business in the state. Warren told Cointelegraph that his operation is already 97% carbon neutral.

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

Similarly, the CEO of Sweden-based WhiteRock Management digital asset miner Andy Long also thinks that bitcoin mining is “moving in the right direction towards fossil-free energy use,” as he said in email comments to Cointelegraph. .

The company claims 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 “will not have the intended effect and sends the wrong message.”

“We would like to see more and more state and local governments encourage investment, rather than stymie growth with rules set out that would be the thin end of the wedge.”

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

How to go to New York goes to California

When the bill goes into effect, New York may see an outflow of mining firms from other states, such as the one that miners exited China after last year’s mining ban.

However, GEM Mining’s Warren believes that contributions from other states will continue to increase, whether the moratorium comes into effect or not, adding that it will likely not cause the domino effect of other sanctions, except that “How to go to New York, go to Cali.”

He added that even if Governor Hochul signs the moratorium into law, “New York’s hashpower will drop anyway as Kentucky, North Carolina, Texas and other states add new incentives for miners.”

“What you are seeing across the country is bipartisan support for mining and the jobs they provide. They also add stability to the power grid.”

squaring up to the competition

New York is already losing its competition to miners with states like Kentucky and Georgia. Georgia is the top US state for hash power. Fortune reported in February that miners may be flocking to the opportunity to offset their emissions with lower-than-average electricity costs and renewable credits. Georgia generates 35.6% of its electricity from nuclear and renewable sources.

Kentucky Governor Andy Beshear signed off on a tax incentive last March for bitcoin miners who set up shop and help support the state’s fledgling renewable energy infrastructure. Kentucky has surpassed New York’s hash power for third place in the union, but produces only 6.6% of its electricity from renewable sources.

related: IMF recommends eco-friendly CBDC and non-PoW mechanism for payments

The controversial mining bill currently sits on the desk of New York Governor Cathy Hochul, who has yet to publicly commit to signing the bill. Instead, she noted that her team will be watching “very closely” what’s on offer over the next few months.