Coal-powered mining companies will not receive permits, which slow the proliferation of polluting sources. Critics regret the legislative body’s decision as they say mining will increase greenhouse gas emissions.
New York’s legislative body recently pardoned Bitcoin mining, which seems to close a chapter of the controversy about its alleged negative impact. Some measures considerably limit the activity but farms threatened with closure will be able to continue operating.
In a quick session, the Senate’s bill calling for immediate action against the mining business did not receive approval. Besides, New York’s legislative body decided to do this before putting the submitted the anti-mining bill to a vote.
That is good news for both sides as coal-powered mining companies will not receive permits. This slows the proliferation of polluting sources in the city and allows existing farms to continue operating. However, they cannot increase their capacity so as not to exceed their limit of polluting gas emission.
New York’s Legislative Body Decision Is Positive for Bitcoin Mining
It is good news for cryptocurrencies that New York’s legislative body pardoned Bitcoin mining. This means that hostility against the business is not widespread, thus providing security for investors.
This refers to the fact that many points that Bitcoin advocates rely on have legal validity. For example, the recent report from Galaxy Digital Mining indicates the real impact of digital mining on energy consumption.
Meanwhile, detractors of the activity remain firm and regret the decision of the legislative body. They claim that mining will increase the emission of greenhouse gases in the city. Additionally, they believe that companies like Greenidge will not stop their expansion plans.
Former coal-powered power plant Greenidge reopened for Bitcoin mining. Although it now uses natural gas, which is still a fossil fuel, environmental groups remain in a state of alarm.
Despite Everything, There Were Control Measures
The measures against New York Bitcoin mining companies were not extreme but they were firm. The legislative body agreed to apply the freezing and the non-granting of permits for cryptocurrency mining based on Proof-of-Work (PoW).
The Proof-of-Work protocol consists of part of the miners solving mathematical problems on the network. They need specialized machines that demand high power consumption to operate at high hashing speeds. This power is essential to keep their structure safe from hacker attacks.
By having more hashing power, based on the quantity and quality of machines, a company receives greater rewards. The desire for more profit causes Bitcoin mining companies to increase their volume of equipment and their energy consumption.
For that reason, critics of the activity see the pardon of Bitcoin mining as a cause for concern. They consider this to be a negative precedent that may lead to “the greatest threat facing humanity.”
Bitcoin Mining Is a Crime Against the Future
Environmentalist Alex Beauchamp believes that not banning Bitcoin mining for 3 years, during the research on its impact, would be a “crime against the future.” According to Food and Water Action Northeast, the organization that Beauchamp represents, that pardon was a legal error.
He refers to the fact that the Assembly acted superficially because it had to deal with other urgent issues. That situation gives Bitcoin mining another chance to continue developing.
By Alexander Salazar