Bitcoin miners say NY ban will be ineffective and 'isolate' state

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

Two Bitcoin miners told Cointelegraph that if the bill that bans Proof-of-Work mining for two years in New York is passed, it would trigger the exit of mining companies from the state and do little to meet the intended goals of the moratorium. .

John Warren, CEO of GEM Mining, told Cointelegraph on June 8 that he and other miners see New York as a hostile place they probably wouldn’t want to open a store.

Miners will not consider going there after the ban becomes 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 ban bill will ban new mining operations in the state for the next two years. It will also refuse to renew licenses for those already operating in the state unless they use 100% renewable energy.

GEM Mining recently commented that the bill would not only miss its intended target, but would also 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 has been providing 1.92 Exahash per second (EH/s) hash power to the Bitcoin network as of May.

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

The company prides itself on being 100% dependent on hydroelectric power for a mixed power contribution of 712 Petahash per second (PH/s).

He long echoed the idea that freezing PoW mining “will not have the intended effect and sends the wrong message.”

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

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

How’s New York, How’s California

If the bill goes into effect, it could see mining firms exit from New York to other states, just as miners rushed out of China following last year’s mining ban.

But GEM Mining’s Warren believes contributions from other states will continue to rise whether or not the moratorium goes into effect, adding that other bans will likely not have a domino effect, aside from “How’s New York, how’s Cali.”

Even if Governor Hochul passes the moratorium into law, “New York’s hash rate will already drop as Kentucky, North Carolina, Texas, and other states add new incentives for miners.”

“What you see across the country is bilateral support for mining and the jobs they provide. They also add stability to the electricity grid.”

challenge the competition

New York is already losing competition for miners with states like Kentucky and Georgia. Georgia is the top US state in terms of hash rate. Fortune reported in February that miners may be flocking there for the below-average cost of electricity and the opportunity to offset their emissions with renewable loans. Georgia produces 35.6% of its electricity from nuclear and renewable resources.

Kentucky Governor Andy Beshear signed a tax incentive law for Bitcoin miners who opened shops last March and helps support the state’s burgeoning renewable energy infrastructure. Kentucky surpassed New York’s hash rate for third place in the union, but produces only 6.6% of its electricity from renewable sources.

Related: IMF recommends eco-friendly CBDCs and non-PoW mechanisms for payments

The controversial mining bill is currently sitting at the desk of New York Governor Kathy Hochul, who has yet to commit to publicly signing the bill. Instead, she noted that her team will be looking “very closely” at the proposal over the next few months.

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