Last week we wrote on Crypto Insiders how the New York state board voted to ban bitcoin (BTC) mining. But last weekend we found out that it’s not a complete ban at all. It is more of a measure to ensure that energy consumption remains limited. However, according to the Blockchain Association, the effort is futile.
Ban Won’t Reduce Bitcoin Energy Consumption
The bill that has been passed is about banning crypto miners that want to use fossil fuels on a large scale. The goal is therefore to have miners switch to renewable energy. It is important that this mainly seems to concern the large parties, who often need adapted infrastructure so that the network can meet the demand.
The Blockchain Association is skeptical of the decision. Lawyer Jake Chervinsky, the head of this organization, expressed his criticism on Twitter. He even thinks that a ban the CO2-emission from bitcoin will not diminish at all, with no gram. All it causes is that the miners will move to places where New York has no influence on them. He calls it “feel good politics.” It is, he says, a moral victory for a small number of people who have no understanding of reality.
1/ As the anti-bitcoin wing of the NY political establishment takes a victory lap over the passage of its mining ban, remember:
It will not help reduce carbon emissions by a single ounce.
All it does is push miners to build in other places where NY has no influence over them.
— Jake Chervinsky (@jchervinsky) June 5, 2022
Bitcoin mining remains controversial
You can of course wonder if it works that way in the long run. If every place on Earth went against Proof-of-Work (PoW), eventually no one would mine. If energy becomes scarce enough (for example due to war), the population may demand a ban. Energy costs would simply become too high and mining would no longer be profitable enough. The Dutchman opening the street had thrown for his mining hardware was therefore not particularly popular in his neighborhood.
The only reason the miners are moving now is because there are other states in the US (and other countries) where mining is allowed, or even encouraged. A tip for the New York government from your editor on duty? Simply capture the greenhouse gases when generating the electricity. It has been proven that it can be done, so why are we so difficult?