Bitcoin miners worried that New York ban will go wrong

It was previously announced that a bill has been introduced in the American state of New York in which the Proof-of-Work mining sector will be banned in the state for a period of 2 years.

Crypto unfriendly state

For example, some Bitcoin (BTC) believe that the ban will make little difference in practice, but could lead to an exodus of mining companies from the state. It would also do little to address the intended goals of the moratorium.

The US state is seen as a crypto-unfriendly place by the new bill. GEM Mining CEO John Warren said of the potential ban:

Crypto-Miners will not consider going there after the ban became part of the discussion.

Possible ban for 2 years

It was recently announced that due to environmental sustainability, the New York State government has decided to ban Proof-of-Work-Mining for a period of 2 years. New companies will then no longer be licensed to perform these tasks. Also, the licenses of companies that expire during this period will not be renewed.

According to the CEO of GEM Mining, should this bill actually pass, it will not only miss its intended purpose, but it will also discourage new miners operating entirely on renewable resources from doing business in the state.

GEM Mining is a Bitcoin mining operation based in Southern California. As of May this year, the operation represents approximately 1.92 Exahash per second, or EH/s, of the Bitcoin network. About 97% of their energy is generated from renewable sources.

Although it remains to be seen whether the ban will actually come into effect, New York is already losing competition with other US states, such as Kentucky and Georgia. Georgia is the state that represents the largest hash power in America. The state reportedly produces over 35% of its power needs from renewable and nuclear sources. It is unknown whether this trend will continue in the future.

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