New York set to become first U.S. state to ban Bitcoin mining

LAGOS (CoinChapter.com) — The attempt to clamp down on Bitcoin’s proof-of-work model continues to increase as New York City becomes the latest state to target the top crypto asset.

In detail, New York lawmakers have advanced a proposed bill that aims to ban Bitcoin mining in the state. The Environmental Conservation Committee of the New York State Assembly had passed the bill to the second phase for voting.

The second phase of voting will be carried out on Monday, April 25, and if successful will still require passage by the entire New York State Assembly and the state’s Senate before it can be signed into law by the state governor.

Notably, New York is the leading state in the U.S. for cryptocurrency mining because of its cheap energy. However, if the law is eventually enacted proof-of-work mining in the state will be banned for two years.

Lawmakers pushing the bill are expressing concern about the energy usage of mining Bitcoin and its effect on the environment.  Kevin Parker, head of the Energy Committee noted that crypto using the proof-of-work mechanism must look for other alternatives. He said:

“Anything that does not fall in line with the [climate law] can’t continue to operate and so no one has made an argument to me from the crypto side that their projects are sustainable.”

The Ban Will Make New York Technologically Backward

The blockchain community has condemned this move noting that it would cause New York to technologically retrogress. They warned that the proposed bill would lock New York out of the benefits of innovative new technology.

Additionally, the moratorium contradicts the belief of the city mayor who has embraced digital currencies. Recall,  New York City Mayor Eric Adams earlier converted his first paycheck to Ether and Bitcoin.

While Ethereum is set to switch to proof-of-stake it is worth noting that Bitcoin uses less energy than several gadgets. ARK Investment Management research revealed that Bitcoin consumes less than 10% of the energy required for the traditional banking system.

Furthermore, research from the University of Cambridge disclosed that bitcoin miners consume about 0.6% of the global electricity. This invariably means that with a better understanding of the Bitcoin mining mechanism, we’ll understand that Bitcoin creates more opportunity than harm.

Crypto Community Reacts To The Proposed Bill

The blockchain and crypto community has expressed displeasure with the state of New York’s plans to ban Bitcoin. Dennis Porter via his official Twitter handle noted that the move would only chase innovative companies from the state.

Meanwhile, Nick Williams indicated that the moves will hinder potential investors from coming to the state. Also, Kyle Schneps, public policy director for Foundry said if the bill is passed it would affect the state negatively. He noted:

“A statewide moratorium that has vague language and captures companies that use mostly renewables is a mistake.”

Additionally, a Twitter user, @paigethepeach knocked the state that recently paid its governor his salary in crypto for taking this new position.