Bitcoin [BTC] mining has time and again posed an issue to governments across the globe. The energy consumption of BTC has been called out by several activists as well as government officials across the globe. As a result, BTC has been touted as not a very environmentally friendly currency. While platforms have been trying to come up with more sustainable ways of mining the cryptocurrency, the New York State Assembly decided to impose a ban on the mining process itself.
The New York State Assembly has been evaluating the hazards of mining Bitcoin and decided to vote on a moratorium on proof-of-work. Earlier today, the state voted to ban BTC mining.
The Bitcoin mining bill managed to secure a total of 95 votes. However, 52 were against it. The bill sponsored by Anna Kelles further read,
“Establishes a 2-year moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions; provides that such operations shall be subject to a full generic environmental impact statement review bt the DEC.”
While this bill is passed only by the state, it still needs a green signal from the State Senate. If the bill is passed and emerges as a law there would be a two-year suspension on Bitcoin mining.
Here’s why New York State Assembly Amassed Backlash
The Bitcoin mining industry has been the epitome of controversy. The environmental issues associated with the industry urged platforms to look for sustainable ways of mining the coin. From stranded gas wells to volcanos, mining enthusiasts have been dipping their toes into different areas. Thanks to this, the total energy consumption of BTC mining dipped by 25 percent in Q1 2022.
Despite this, the New York State Assembly went ahead and passed the moratorium on Bitcoin mining. Therefore the community was visibly enraged with the New York State Assembly’s decision.