New York Bitcoin miners are reacting to the adoption of a crypto moratorium measure that, if approved by the governor in the next 10 days, will bar new proof-of-work (PoW) mining facilities using fossil fuel electricity behind the meter from starting shop in the state for two years.
Current ones would likewise be prohibited from expanding their energy consumption under the proposal. The foundry stated,
“As a Rochester-based company committed to growing the city and state’s economy through job creation and economic stimulus, we believe this legislation limits jobs and innovation in New York for the foreseeable future.”
Greenidge Generation, which has a 106-megawatt facility in Dresden, also issued a statement clarifying that even if the measure is signed into law, the company’s current operations in the state will not be affected.
Greenidge Generation stated that its pending air permit renewal application was filed on March 5, 2021, which has attracted a lot of attention from both environmentalists and crypto enthusiasts in the state. As a result, this bill would have no effect on Greenidge’s New York plant.
Assemblywoman Anna Kelles, the bill’s sponsor, has emphasized the bill’s limited scope, which has been tweaked from a prior form that died in the Assembly last year. In general, it would halt existing levels of carbon emissions in the state for bitcoin mining and only apply to a small number of fossil-fuel power plants. Kelles on the assembly floor said that the bill is not retroactive and that it is only specific to the power plants.
Bitcoin mining inherently bad for the environment?
Bitcoin uses a lot of electricity. That energy demand is increasing, and it now consumes as much energy annually as entire countries like Finland, Malaysia, or Sweden. While bitcoin is not the only industry that consumes as much energy as entire countries, for example, concrete consumes more energy than India, both industries produce pollution, including carbon emissions.
Furthermore, it’s feasible that bitcoin miners might provide direct advantages to the grid, and, if managed properly, could even result in decreased overall carbon emissions.
Bitcoin and other cryptocurrencies have a problem with energy and the environment. But, if done correctly, all of that energy may be channeled into something beneficial to the earth.