New York State Senate passes Bitcoin mining moratorium

The New York State Senate approved a controversial proof-of-work (PoW) mining ban invoice that will prohibit any new Bitcoin (BTC) mining operations within the state.

The PoW mining ban invoice was first passed by the state assembly in April. It goals to ban any new mining operations within the state for the following two years. Now, the invoice is headed for the governor’s workplace, which, as soon as authorised, would make New York the primary state in the US to position a moratorium on cryptocurrency mining.

Standing of the invoice as of June 3. Supply: New York State Senate

PoW mining consensus is predominantly used by Bitcoin miners and is considered one of the safest and most decentralized ways of mining. However, the practice is controversial as it requires an incredibly high amount of energy.

The vote on the bill saw many senators flip from undecided to in favor, claiming they are concerned about carbon emissions.

Related articles

The bill would not only prohibit new mining operations but also refuse the renewal of licenses to those who are already operating in the state. Any new PoW mining operation in the state could only operate if it uses 100% renewable energy.

Bitcoin’s mining consensus mechanism has been one of the hottest topics of debate among policymakers aided by the environmentalist and billionaire lobbies supporting the proof-of-stake mining consensus, which is far less energy-intensive. Greenpeace and Ripple (XRP) co-founder Chris Larsen have been campaigning for a change in the Bitcoin code.

Policymakers typically solely deal with the excessive vitality consumption by Bitcoin miners, ignoring the truth that a big chunk of this vitality comes from renewable sources, particularly in New York the place 50% of the vitality is produced from renewable sources.

Associated: NY State Supreme Court dismisses petition against crypto mining company

Criticism of PoW mining gained steam final 12 months on the peak of the bull run. Nonetheless, by the top of the final 12 months, a MicroStrategy-led Bitcoin mining council report highlighted that greater than 60% of the electrical energy consumption by the BTC community comes from clean sources.

Sustainable vitality utilization by Bitcoin vs different industries. Supply: BMC

The European Parliament proposed an identical PoW mining ban, nevertheless, it amended the proposal to remove the ban amid growing public scrutiny.

Consultants imagine New York’s determination to ban PoW mining would create a domino impact and different states may observe. The U.S is presently the world chief in Bitcoin mining hash price, accounting for 38% of the community’s mining energy.