The state of New York had recently passed a bill to introduce a ban on proof of work mining. It prohibited any new Bitcoin mining operations in the state. Passed by the State assembly in April 2022, the proposal was to ban mining operations of Bitcoin for the next two years. The bill is now headed to the governor’s office where the governor shall give his assent and turn the bill into effective law.
The decision on the bill saw numerous senators change their verdict from uncertain to incline toward the bill, saying that they are concerned about proof of work-related carbon emissions.
New York will become the first state in the US to introduce a moratorium on Bitcoin mining.
The bill wouldn’t just deny new mining operations but also reject the renewal of licenses to the people who are as of now operating in the state. Any new PoW mining operation in the state could operate in the event that it sources 100 per cent of its energy requirements from sustainable resources.
PoW mining consensus is prevalently utilized by Bitcoin miners and is considered one of the most secure and most decentralized approaches to mining. The practise is controversial as it requires a very high amount of energy.
Probably the most sweltering subject of discussion among policymakers, Bitcoin’s mining consensus mechanism has been helped by environmentalists and billionaires supporting proof-of-stake mining consensus, which is undeniably less energy concentrated. Greenpeace, as well as Ripple co-founder Chris Larsen, have been lobbying for an edit in the Bitcoin code.
High energy consumption by Bitcoin miners is often under the spotlight of lawmakers around the world, overlooking the way that a larger piece of this energy comes from sustainable sources, particularly in New York where half of the energy is delivered from sustainable sources.
Other states would likely follow New York’s decision once the assent is given by the governor thereby creating a “domino effect,” experts say. Accounting for 38% of the network’s mining power, America is currently the world leader in Bitcoin mining hash rate.