Bitcoin miners are giving up operating in New York due to regulatory uncertainty – DiarioBitcoin

Bitcoin miners are giving up operating in New York due to regulatory uncertainty - DiarioBitcoin

Bitcoin miners are giving up operating in New York due to regulatory uncertainty - DiarioBitcoin For DailyBitcoin Editor

The state was once a draw for miners from Bitcoin for its opening, but environmental concerns about the effects of mining affect the industry, according to a report from Coindesk.

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A few days ago we reported that a study carried out by the University of Cambridge revealed that, despite the bans, there was still mining in China Bitcoinand in only the United States in the amount of electricity consumption for mining Bitcoin.

The report from that university highlights that the United States contributes 37.84% of the average monthly hashrate contribution, with the state of Georgia being the one with the largest amount of mining, followed by Texas and New York, the latter with 9.8% hashrate.

However, a report made by the media Coindesk reveals that this percentage may go down, as many mining companies are considering leaving New York, as the New York Senate is considering a bill calling for a two-year moratorium on new gas-using crypto mining projects, coal or other non-renewable energy sources, after the Assembly version of the bill passed the state lower house last week.

complaints

“All crypto companies have permanent control over starting business in New York due to political and regulatory ambiguity. If the bill were passed, New York would become a permanent afterthought for the industry.” said to Coindesk Kyle Schneps, director of public policy at foundryone of the largest miners in the US, based in Rochester, New York. foundry is owned by the parent company of Coin Desk, Digital Currency Group.

The planned expansions of foundry in the state “will be reduced along with the hiring”, Schneps said.

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They go…

The bill, which passed the state Senate in late April, calls for a moratorium on proof-of-work mining powered by non-renewable sources, the kind used on the grid. Bitcoin, in the state while its environmental impact is being evaluated.

Most crypto mining companies stay away from the state due to authorities’ perceived negative stance toward the industry, said Whit Gibbs, CEO of Compass Mining, a hashrate marketplace that connects miners with investors from around the world.
Didar Bekbau, co-founder of the mining company Xive.io based in Kazakhstan, which wants to expand its operations to the US, also told CoinDesk what leans toward Texas due to favorable regulation and availability of cheap electricity.

Expensive prices

Regulatory uncertainty, including the bill, is one of the few factors keeping potential mining companies away from New York state, he told CoinDesk an executive of a local mining hosting company. Increases in energy prices they are another reason businesses stay away from the state. The executive attributed the spike in power rates to global macro events such as the conflict in Ukraine, as well as the rising cost of meeting renewable energy mandates in New York. The executive asked not to be identified, citing fear of reprisals from environmental defenders and local officials.

This bill sends a “clear message to the crypto industry that New York is closed to the public”Schneps said. “It sets a dangerous precedentand it is a case of “government overreach” in the sense that it limits the right to power of a new industry, thus condemning the industry to failure, he said.

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And renewable energy?

While the bill only targets mining operations that use fossil fuels, those using renewable energy are wondering if they will be next, he told CoinDesk John Olsen, who heads New York policy at the advocacy group BlockchainAssociation. The original language of the bill called for a moratorium on all types of mining, he said.

“Any kind of moratorium on the statute is problematic because it can always be expanded or extendedOlsen said.

The miners with whom Valkyrie Investments has spoken think that “Passing such regulations would probably make them reconsider the future of New York,” said the asset management firm’s chief investment officer, Steven McClurg. But “as is the situation now”, mines powered by renewable energy do not have “many reasons” to move to another place, he said.

hydroelectric

coinmint, which operates a mine Bitcoin with 435 megawatts of power capacity at a former aluminum smelter in Massena, New York, declined to comment specifically on the bill. But CEO David Fogel said his New York subsidiary operates “in an environmentally responsible way through the use of renewable hydroelectric energy” in an email to CoinDesk.

It is worth noting that New York is rich in hydroelectric power; 70% of its locally produced power is hydroelectric, but that only supplies a quarter of the power demand in the state, according to the state power authority. It also has some of the cheapest electricity prices for businesses in the northeastern US, he says. Coindesk.

The great cause

Environmental concerns have followed crypto miners, with one mine in particular the target of environmentalists’ wrath: the mine Greenidge near Seneca Lake in upstate New York.

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This is a 1937 coal-fired power plant that was converted to a natural gas facility in 2014 and is now home to 19,400 mining rigs. Bitcoin, with plans to add another 29,800 machines by the end of the year.

Environmentalists claim the mine is polluting the lake and jeopardizes the state’s carbon emissions goals. They have asked the authorities and the government to deny the renewal of the plant’s air pollution permits. The New York State Department of Environmental Conservation (DEC) postponed a decision on the issue until June 30, just two days after the gubernatorial primary, while the state Supreme Court denied a preliminary injunction that would have halted mine operations before a decision.

In December of last year, Massachusetts Senator Elizabeth Warren asked the company to provide information on its carbon footprint, saying that “Mining operations at Greenidge and other facilities raise concerns about their impacts on the global environment, local ecosystems and consumer electricity costs”. A month later, he sent another letter to six miners in the US, he recalls Coindesk.

Sources: Coindesk, University of Cambridgearchive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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