New York leads the way in cryptocurrency regulation. The first step was to ban Bitcoin mining


New York decided to create an innovative law. And this directly affects the world of cryptocurrencies. The Governor Kathy Hochul approved Bitcoin mining ban preventing new permits from being issued. This is the first legislation of its kind in the United States, and is a direct reminder China’s decision to ban mining. However, there is a significant difference.


A solution to the mining energy problem. Bitcoin mining consumes at an alarming rate. A a recent study in the journal Nature this mining has been found to pollute more than oil extraction and is similar to natural gas or coal. To prevent this practice, he decided to take action from New York.

Within the next two years, New York will only allow mining based on 100% renewable energy.

It comes at a difficult time for cryptocurrencies. Because, FTX dropThe cryptocurrency sector is going through one of the most difficult times when low confidence. The two-year moratorium has an impact proof of minería workwhich are based on Bitcoin or Ethereum.

“A dangerous precedent”. A adThe Digital Chamber of Commerce explained that the decision “will set a dangerous precedent in determining who can and cannot use energy.” A ban that restricts the activities of many miners who see this legislation as a restriction on their freedom.

From some companies like GEM Mining purpose that this new legislation will not only affect PoW mining, but will also “discourage new miners who use renewable energy because they will not want to do business in an environment hostile to mining and because of the potential for stricter regulatory progress.”

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Mining is dead. Long live mining! The significant impact on the environment mining is beyond doubt. And the first to be aware are the miners themselves. For this reason, Proof-of-Work mining faded away for a while, and Proof-of-Stake mining, where users are rewarded not for work, but for “immobilized” cryptocurrencies, is starting to grow strongly. . With this The system of “imprisoning” debates about consumption is radically changing.

It remains to be seen if other US cities will be encouraged to implement similar legislation. It seems clear that the days of traditional Bitcoin mining are dying out.

in Xataka | Unexpected impact of cryptocurrency panic and the price of energy: Wallapop is filling up with very expensive mining rigs

Source: news.google.com

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