New York passes a bill that should ban new cryptocurrency mining operations

New York wants crypto to abandon Proof of Work

New York passes a bill that should ban new cryptocurrency mining operations

New York has passed a moratorium that could ban new cryptocurrency mining operations

The New York State Assembly has passed a moratorium (ban/prohibition) on new cryptocurrency mining operations that rely on inefficient proof-of-work authentication mechanisms. Proof-of-work cryptocurrency/blockchain are currently used to mine Bitcoin and Ethereum, two of the world's most popular and valuable cryptocurrencies. 

Proof of Work blockchains become more challenging to mine/authenticate over time, causing the computational needs of cryptocurrency mining operations to grow over time. This has resulted in cryptocurrency mining operations become increasingly power inefficient, placing strain on power grids where cryptocurrency miners operate. These rising power requirements have forced several nations and states to ban or restrict cryptocurrency mining, as these power requirements are increasing power generation costs and are making it harder to nations to hit their green energy targets.

While the New York State Assembly has passed their moratorium, New York Governor Kathy Hochul has not signed the legislation yet. She has the power to veto this bill, and if she does, new new Proof-of-Work crypto currency mining farms can be set up on New York for the next two years. 

New York passes a bill that should ban new cryptocurrency mining operations

Proof-of-Work is too power intensive

Proof-of-Work cryptocurrency mining operation require a lot of power, and this power increases the strain on the local power grids where mining farms operate. This additional power increases the baseline and peak loads on local power grids, forcing them to rely more in their more expensive and carbon-intensive power generation techniques.

New York's proof of work moratorium will decrease the amount of this energy/carbon intensive cryptocurrency mining from occurring within their state, should the legislation get signed by their Governor. That said, their is a provision in the bill that will allow proof-of-work mining to occur if it uses green energy. More efficient Proof-of-stake mining will also be allowed.

At this time, it is unknown what will happen once this bill's two-year timer runs out. It could evolve into a full-on ban, or it could simply disappear once its term expires. I guess we will find out in 2024.

You can join the discussion on New York passing a bill that should ban new proof-of-work cryptocurrency mining operations on the OC3D Forums.

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