The New York state’s possible moratorium on fossil-fuel mining could be considered an opportunity.
New York has recently passed a moratorium that affects Bitcoin mining in the state. It is not a total ban on proof-of-work mining but a kind of 24-month freeze on starting new Bitcoin mining facilities that use carbon-based fuel.
BTC Mining Moratorium Driven by Focus to Cut Down Carbon Emissions
The bill is now awaiting assent by Governor Kathy Hochul. This implies that whether the law is passed or not, mining at home or commencing new plants with renewable energy is still okay.
Although the moratorium will discourage mining from setting a shop in the state, it could also be an opportunity. During the 2-year freeze, active miners and even new enterprises who want to pursue this rewarding activity will be motivated to go green.
New York is also studying the impact of proof-of-work mining on the environment. The bill promoters indicated they are concerned about the trend where miners re-open decommissioned fossil-carbon-based power plants, such as the Greenidge Generation in Dresden in New York.
According to a recent survey done by the Federal Reserve, Bitcoin Mining is not a black box. The open network provides ample data about its operations. Therefore, “we have a decent understanding of who is mining Bitcoin and how many people use it,” read a comment on the survey.
It is also adaptable to sudden changes. For example, China tried to curtail all crypto activities in the nation, but most miners simply packed their ASICs and moved to other countries, especially Kazakhstan and The U.S.
Bitcoin Miners can Be Creative, Go Green
Although mining has become corporatized and the large firms might be resistant to looking for alternative energy, it is still possible to go green. Indeed, they have already started, as some companies have devised ways of capturing flared gasses in Oman and Siberia to use for mining.
Miners in New York should grab the opportunity and build renewable infrastructure to grow the demand for eco-friendly facilities in the state. Jack Dorsey, a prominent Bitcoin advocate, has said it is not an alien idea. He recommends that miners should shift to solar and wind farms.
Earlier in the year, Todd Kaminsky, the chair of the Senate Environmental Conservation Committee and the author of New York’s Climate Leadership and Community Protection Act was quick to speak against the bill. He pointed out that banning Bitcoin does not achieve any goal, but the activity will simply shift elsewhere. It is like the gold ban of the 20th century, which only boosted production and prices of the asset.
Proof-of-work is an energy-intensive protocol, but it is what gives BTC its high value. This is why proposals to adopt different consensus protocols have failed.
Although two years is truly a long time, Bitcoin could reinvent itself, and the best way is to go green because the issue is likely to remain.