New York State is one of the leading United States cryptocurrency producers. The state Senate has approved a bill that could disrupt the entire industry. The text aims to prevent the mining of bitcoin and other cryptocurrencies using the Proof-of-Work in the state. The goal is to limit greenhouse gas emissions.
New York only accepts farms that use renewable energy
The bill, signed by the Senators, includes strict measures. This is the minimum two – year embargo for new businesses using carbon – based fuels in New York State. Farms of mining they must use renewable energy urgently and exclusively.
Bitcoin (BTC) and other cryptocurrencies adopted by Ethereum (ETH) the mining protocol Proof of Work to validate network transactions. this consensus consumes a significant amount of energy since it is a mechanism that requires many computers to solve an equation.
According to Senator Kevin Parker of New York, to date, only one such facility is currently operational. This measure reflects, to a lesser extent, the obligation of companies in the sector to comply with the new rules established on the mining of cryptocurrencies.
After the Senators sign the bill, it will enter into force subject to the signature of New York State Governor Kathy Hochul. It demonstrates a strong commitment to the environment.
However, it so happened that the Democrat received a $ 40,000 Bitcoin donation. Taking these facts into account, his decision remains uncertain.
New York, one of the leading Bitcoin producers in the United States
New York State has a cheaper amount of energy. That’s why companies in mining Cryptocurrencies are of great interest. In fact, the State is a significant producer of hydroelectric energy. Since the mining Cryptocurrency was banned in China last year, after New York became the site of business relocation. Then it quickly became one of the major Bitcoin producers in the country.
However, if the moratorium is adopted, the companies will mining New York cryptocurrency companies declare their intention to relocate. They want to move to a more mining-friendly state like Texas.
Conclusion
A similar bill was already discussed last year. However, this one did not pass the stage Senate Committee on Environmental Protection. Prohibit this legislation companies of mining to settle in the territory of the New State york the senator worries Todd Kaminsky. She could only be upset the cryptocurrency ecosystem the United States, but it would also disrupt the New York State economy.
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Emile Stantina
Interested in investment and financial markets after a business school in Chambéry, the passion for cryptocurrencies was obvious. The blockchain is definitely the universal tool of tomorrow.
