- BTC mines working on PoW are under the microscopic view of the NY State Senate.
- Mines are requested to change from fossil energy usage to renewable energy.
The New York State passed a bill to ban Bitcoin (BTC) mining plants that run on energy obtained from fossil fuels. BTC and its popularity are at the peak of cryptoworld which parallels the problems it causes and faces. One major concern is the mining algorithm, Proof-of-Work (PoW). The energy consumption and computation devices are high ended. Many nations find this problematic and are implementing strict regulations to keep this in control.
Countries like Russia and Malaysia are pulling out BTC miners who are engaging in enormous usage of electricity and also those who do illegal mining. Because these directly impact the power supply problem of the nation. According to Cambridge University, the Bitcoin network power demand is 13.45 GW and the annualized consumption is 117.88 TWh.
On the other side, Kazakhstan is estimated to earn a revenue of $1.5 Million in Q1. They have effectively utilized their resources to turn BTC mining into one primary source of income. They overcame the illegal mining problem by banning and ordering legal plants to submit proper documentation.
Details of NY Bill
The NY state senate passed the bill on Jun 2, the push factor to that was Environmental Conservation Committee suggestions. The cryptocurrency and blockchain study task force has been set up to submit a detailed report to the Governor about the working and uses of cryptocurrencies.
The counterarguments to the bill are that it may reflect in the domino or snowball effect, making every state repeat this activity. Another conflict is the fear of losing BTC mines in NY to other cheap resource states and increasing the unemployment ratio.
Dennis Porter tweeted:
New York State just ensured more jobs, innovation, and investment will occur in the 49 other states.— Dennis Porter (@Dennis_Porter_) June 3, 2022
This is a lose-lose for the people of NY. https://t.co/wiOemwfcu6
But some also see this to be a greater chance for conversion to renewable adoption on a massive scale.