Details and perspectives on the New York mining ban

  • 11:32 Nov 25, 2022
Details and perspectives on the New York mining ban

Recently it became known about the ban on cryptocurrency mining in New York State. There is reason to believe that miners who do not use renewable energy sources will not be able to continue operating.

The opening of new businesses that plan to operate based on the PoW algorithm will be banned for two years. Moreover, after that, companies that want to resume operations after the permits expire will not be able to do so. The ban also applies to capacity expansion.

The state only allows mining with 100% renewable energy. However, no business has that amount, as hydropower generates only a third. It must be recognized that the overall share of renewable sources is high at 80%, which is higher than the global figure. But the law prescribes 100%, which makes it impossible to work.

Experts believe that the document in this form will eliminate the interest of investors in mining in the state. Nevertheless, the wording corresponds to all the principles of the White House and the U.S. presidential administration. Moreover, Washington does not rule out banning the use of existing providers and ordering miners to build their own hydro and solar power plants. New York may be a pilot project, whose requirements will soon be extended to the whole country.

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