NY bill to ban crypto miners from using fossil fuel power for 2 years

By Pranali Mehta  | Date: 2022-06-08

NY bill to ban crypto miners from using fossil fuel power for 2 years

The New York State Legislature has reportedly approved a bill that would inflict a two-year ban on the usage of fossil-fuel power plants to energize crypto miners like Bitcoin.

The bill outlines the state’s effort to minimize statewide greenhouse gas emissions by 85 percent by 2050. It remarks that the operations of mining cryptocurrencies are widely expanding in New York which would increase the state’s energy utilization.

Computer systems mining cryptocurrencies need a huge amount of electricity to make them competitive enough to solve mathematical puzzles and authenticate blockchain transactions. The first miner to solve the puzzle receives cryptocurrency as a reward.

To avoid crypto mining from increasing greenhouse gas emissions, the bill would inflict a prohibition on issuing air permits and renewing licenses of electricity generation plants that use carbon-based fuel to provide energy to these operations.

The bill received approval from the State Assembly in April whereas the Senate passed it a week ago. But Governor has shown an indecisive nature over signing the bill.

The Governor mentioned that it is important to strike a balance between protecting the environment and safeguarding job opportunities in inactive areas while ensuring proper management of energy consumption.

Meanwhile, the cryptocurrency market is slowly recovering from its recent downfall. Considering the money channeled into listed crypto funds, credible investors believe that bitcoin is bottoming out.

Last week saw an improved overall flow in such funds with an average inflow of USD 66.5 million per week. It contradicts a dismal April which registered an average outflow of USD 49.6 million per week.

Since a peak in November last year, Bitcoin has lost around half its value. This year, it is down by a third and has been withering at USD 30,000 for a month.

Source Credits: https://www.thehindu.com/sci-tech/technology/ny-bill-aims-to-limit-crypto-miners-using-fossil-fuel-generated-power/article65502888.ece

About Author

Pranali Mehta     aeresearch.net

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta has dutifully walked down the slated path and worked in the chemicals industry for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience...

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