Two Bitcoin miners have told the Cointelegraph that if the bill banning evidence-based mining for two years in New York becomes law, it would eventually trigger the emigration of mining companies from the state and do little to address the proposed goals of the moratorium.
John Warren, CEO of GEM Mining, told the Cointelegraph on June 8 that he and other miners now see New York as an unfriendly place where they would probably not want to open a store.
“Miners will not consider going there after the ban became part of the debate.
Environmental sustainability has been at the heart of the New York Government’s case against Proof-of-Work (PoW) mining. The controversial bill banning mining would ban all new mining in the state for the next two years. It would also refuse to renew licenses to those already operating in the state unless it uses 100% renewable energy.
GEM Mining recently said that the bill will not only miss its intended goal but also discourage new, newly built miners from doing business in the state. Warren told the Cointelegraph that his business is already 97% carbon neutral.
“The New York regulatory environment will not only stop their goals … but it will also likely prevent new, renewable miners from doing business with the state …”
The moratorium was recently approved in NY. We shared our thoughts @CNBChttps://t.co/2Trotc5bT3
– GEM Mining (@GEM_Mining) June 8, 2022
GEM Mining is a Bitcoin (BTC) mining company in South Carolina that provides 1.92 Exahash per second (EH / s) of hash power to the Bitcoin network as of May.
Similarly, Andy Long, Sweden’s CEO of digital asset maker White Rock Management, believes that Bitcoin mining is “moving in the right direction towards mineral-free energy use,” he said in an email to Cointelegraph.
The company boasts 100% hydropower for its 712 Petahash per second (PH / s) hash contribution.
Long echoed the idea that freezing PoW mining “would not have the desired effect and sends the wrong message.”
“We want to see more states and municipalities encourage investment rather than curb growth with prescriptive rules that would probably be the thin end of the wedge.
About 10% of US hashing power comes from New York, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI). This makes it the fourth largest producer in the country. As of April, miners in a survey by the Bitcoin Mining Council indicated that about 58% of the energy used for mining comes from sustainable sources.
How New York goes, California goes
The bill, if enacted, could lead to the outflow of mining companies from New York to other states, just as miners left China in a hurry after a mining ban last year.
However, Warren at GEM Mining believes that contributions from other states will continue to grow whether the moratorium takes effect or not, adding that it would probably not have the domino effect of other bans, except that “how New York goes, goes Cali.
He added that even if Governor Hochul signs the moratorium, “New York’s hash power would still fall as Kentucky, North Carolina, Texas and other states add new incentives for miners.
“What you see all over the country is the bilateral support for mining and the jobs they provide. They also add stability to the electricity system. “
Competition in the competition
New York is already losing its competition with states like Kentucky and Georgia for miners. Georgia is the top US state for hashish power. Fortune reported in February that miners could be flocking there due to below-average electricity costs and the possibility of offsetting their emissions with renewable credits. Georgia produces 35.6% of its electricity from nuclear energy and renewable energy sources.
The Governor of the Central Bank of Kentucky, Andy Beshear, signed into law last March a tax incentive for Bitcoin miners who set up a store and help support the state’s new renewable energy infrastructure. Kentucky has surpassed New York’s hashtag third place in the union but produces only 6.6% of its electricity from renewable energy sources.
Connected: The International Monetary Fund recommends eco-friendly CBDC and non-PoW payment systems
The controversial mining bill now sits on the desk of New York Gov. Kathy Hochul, who has not yet publicly committed to signing the bill. Instead, she noted that her team will look at the proposal “very closely” in the coming months.
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