The state was once a draw for Bitcoin miners because of its openness. According to a Coindesk report, many environmental concerns about the effects of mining are affecting the industry.
A few days ago, a study carried out by the University of Cambridge revealed that, despite the prohibitions, there was still Bitcoin mining activity in China, and only the United States beat it in the amount of electricity consumed for Bitcoin mining.
The report from that university highlights that the United States of America contributes 37.84% of the standard monthly hash rate participation, with the state of Georgia being the one with the most prominent areas when it comes to mining activity rates, followed by Texas and New York, the latter with 9.8%. Of hash rate.
However, a report made by the Coindesk media outlet highlights that these numbers may crumble down since many mining entities are considering abandoning their activities in New York.
The Senate of that state is studying a new policy that calls for a two-year moratorium after the Assembly version of the law passed the state lower house last week for new crypto mining projects that use gas, coal, or other nonrenewable energy sources.
A Bunch of Complaints
Due to political and regulatory uncertainty, all crypto entities have total control over running a business in New York. If this law manages to pass, New York will become a constant re-consideration for the crypto space.
In late April, the bill, which passed the state Senate calls for a moratorium on proof-of-work mining empowered by nonrenewable sources in the state while its environmental damage gets evaluated.
According to Whit Gibbs, CEO of Compass Mining, most crypto mining entities are keeping their distance from the state due to authorities’ perceived negative stance toward the crypto space.
Didar Bekbau, the co-founder of Kazakhstan-based miner Xive.io, which wants to expand its operations to the US, also told CoinDesk that it leans toward Texas due to stable regulation and the availability of cheap electric sources.
Unaffordable Prices
Regulatory uncertainty, including the law, is one of the few factors keeping potential mining entities away from New York state. Rising energy prices are another factor that makes businesses flee from the state.
The executive attributed the spike in power rates to global macro situations such as the current war going on in Ukraine and the rising cost of meeting renewable energy mandates in New York. The executive asked to remain out of focus, citing fear of reprisals from environmental defenders and other local authorities.
By: Jenson Nuñez
