Two Bitcoin miners told Cointelegraph that if the bill that banned Proof-Work mining for two years in New York were passed, it would encourage the exodus of mining companies from the state and do little to help achieving the objectives of the moratorium.
On June 8, John Warren, CEO of GEM Mining, told Cointelegraph that he and other miners now see New York as a hostile place and probably would not be keen to set up shop.
“Minors will not consider going after the ban has been part of the discussion.”
Environmental sustainability has been central to the New York State government’s argument against Proof-of-Work (PoW) mining. The controversial Prohibition of Mining Bill would ban all new mining operations in the state for the next two years. It would also deny license renewal to those already operating in the state unless they use 100% renewable energy.
GEM Mining recently said the bill will not lose its track record, but will discourage new miners using renewable energy from doing business in the state. Warren told Cointelegraph that its operation is already 97% carbon neutral.
“Not only will the regulatory environment in New York stop its target … but it is likely to discourage new miners, based on renewables, from doing business with the state …”
The recently passed mining moratorium in NY. We shared our thoughts with @CNBChttps://t.co/2Trotc5bT3
– GEM Mining (@GEM_Mining) June 8, 2022
“Not only will New York’s regulatory environment stop its focus … but it’s also likely to discourage new miners based on renewable energy from doing business with the state …” The mining moratorium was passed by New York recently. We shared our thoughts with @CNBChttps: //t.co/2Trotc5bT3. – GEM Mining (@GEM_Mining) June 8, 2022
GEM Mining is a South Carolina-based bitcoin (BTC) mining company that added 1.92 Exahash per second (EH / s) of hashing power to the Bitcoin network in May.
Similarly, the CEO of Swedish digital asset miner White Rock Management, Andy Long, believes that bitcoin mining is “moving in the right direction towards the use of non-fossil energy,” as he said in comments sent by email to Cointelegraph.
The company is proud to rely 100% on hydroelectric power for its contribution to the hash power of 712 Petahash per second (PH / s).
The idea that the freezing of PoW mining would not have the intended effect and send the wrong message was long echoed. ”
“We want more states and local government to encourage investment rather than impede growth with overly restrictive regulations that would probably only end espionage. »
According to Cambridge Bitcoin Electricity Consumption Index (CBECI), about 10% of the hash power in the United States comes from New York. This makes it the fourth largest producer in the country. In April, miners in a survey conducted by the Bitcoin Mining Council reported that about 58% of the energy used for mining comes from sustainable sources.
When New York goes, California goes
If enacted, the bill could lead to the passage of mining companies from New York to other states, just as miners withdrew from China after a ban on mining last year.
Warren GEM Mining, however, believes that contributions from other states will continue to increase whether or not the moratorium comes into effect, adding that it would probably not cause a domino effect of further bans, except “When go New York, there will be Cali “.
He added that even if Governor Hochul signs the moratorium in his law, “New York’s purchasing power would fall anyway as Kentucky, North Carolina, Texas and other states would provide new incentives for minors.”
“What you see across the country is mutual support for mining and the jobs that come with it. It also provides stability to the power grid. ”
To address the consensus
New York is already losing the competition for states like Kentucky and Georgia for minors. Georgia is the number one state in the United States for hash energy. Fortune reported in February that miners could be there for lower than average electricity costs and the ability to offset their emissions with renewable credits. Georgia generates 35.6% of its electricity from nuclear and renewable sources.
Last March, Kentucky Governor Andy Beshear signed into law a law that provides a tax incentive for bitcoin miners who set up shop and help the state’s older renewable energy infrastructure. Kentucky has ranked New York’s hash power third in the Union, but it only generates 6.6% of its electricity from renewable sources.
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The controversial mining bill is currently located on the desk of New York State Governor Kathy Hochul, who has yet to make a public commitment to sign it. Instead, she said her team will be looking “closely” at the proposal in the coming months.