{"id":894,"date":"2022-06-10T17:55:14","date_gmt":"2022-06-10T17:55:14","guid":{"rendered":"https:\/\/grandpascrypto.com\/?p=894"},"modified":"2022-06-10T17:55:16","modified_gmt":"2022-06-10T17:55:16","slug":"controversial-crypto-mining-bill-passes-new-york-senate-lies-with-state-governor","status":"publish","type":"post","link":"https:\/\/grandpascrypto.com\/controversial-crypto-mining-bill-passes-new-york-senate-lies-with-state-governor\/","title":{"rendered":"Controversial Crypto Mining Bill Passes New York Senate, Lies with State Governor"},"content":{"rendered":"\n

tl;dr Summary: <\/strong>A controversial bill limiting the mining of Bitcoin and other proof-of-work cryptocurrencies has now successfully passed through the New York State Assembly and Senate. Assembly Bill A7389C now only requires sign off from NY State Governor Kathy Hochul to become law. Governor Hochul is yet to commit to signing the proposal, sparking hope in the crypto community that she could veto the bill.<\/em><\/p>\n\n\n\n

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Source: https:\/\/www.nysenate.gov\/legislation\/bills\/2021\/a7389<\/figcaption><\/figure>\n\n\n\n

On Thursday 2nd<\/sup> June, the New York State Senate voted 35-28 in favor of Assembly Bill A7389C<\/a>, sparking dismay for cryptocurrency enthusiasts in New York and beyond. Although widely reported as a \u2018ban\u2019 on Bitcoin mining, this is not quite the case. Instead, the bill would establish a two-year moratorium on new permits for proof-of-work<\/a> mining operations that use a carbon-based fuel source. It would also veto permit renewals from any existing miners that wish to increase the size of their mining operations. Only applications from organizations using 100% zero-emission energy would be accepted.<\/p>\n\n\n\n

Bitcoin and Ethereum, the two biggest cryptocurrencies by market cap, currently use proof-of-work consensus mechanisms to power their blockchain. Supporters of both argue that proof-of-work is the most secure and decentralized way to power a blockchain. The need for energy-intensive \u2018mining\u2019 operations in proof-of-work cryptocurrency has long-attracted criticism for its negative effects on the environment, however. The State of New York has committed to ambitious plans<\/a> to transition to 100% zero-emission electricity by 2040. Those backing the bill state the included measures will help the state towards these goals.<\/p>\n\n\n\n

Claims surrounding Bitcoin\u2019s energy usage are highly controversial<\/a>. Estimates of energy consumption vary significantly, however research from CoinShares<\/a> in January 2022 found Bitcoin carbon emissions to amount to only around 0.08% of global emissions, an amount lower than that related to use of tumble driers worldwide. The conclusion of the report emphasized the potential revolutionary power of Bitcoin, in an attempt to justify Bitcoin\u2019s share of global emissions, stating:<\/p>\n\n\n\n

The Bitcoin network provides a global, freely available, censorship resistant, debasement protected, and human rights preserving monetary network for the entire world. Within that context, we believe the small addition to global emissions is absolutely worth the cost.<\/em><\/p><\/blockquote><\/figure>\n\n\n\n

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Ultimately I agree with this (that is, I oppose banning PoW). The government picking and choosing which specific applications are an okay use of electricity or not is a bad idea. Better to just implement carbon pricing, and use some of the revenues to compensate low-income users. https:\/\/t.co\/NnBzmv5mYz<\/a><\/p>— \u8c5a\u6797 vitalik.eth (@VitalikButerin) June 4, 2022<\/a><\/blockquote>