New York is planning to clamp down crypto mining operations for the next 2 years temporarily.
Bitcoin blockchain network currently runs on Proof-of-work (PoW) consensus, which is a highly inefficient blockchain consensus over Proof-of-stake (PoS). Due to high energy consumption by the mining equipment, environmental activists oppose Crypto or Bitcoin mining operations.
Recently New York Governor Kathy Hochul signed into law a bill clamping down on bitcoin mining within the state. The bill targets a ban on Proof-of-work (PoW) consensus-based Cryptocurrencies and it will be only a temporary ban.
This US state will stop the crypto mining permission for the next two years for the crypto mining companies and also suspend the existing permit for all the crypto mining companies which are running on fossil fuels ( Oil, Gas, Coal, etc).
NY governor Kathy also said that such steps will push the state toward better financial innovation at the same time lowering the many small challenges like environmental issues because of blockchain mining activities.
It is worth noting that a 2 Year ban on such crypto mining companies will be a problem for the mining companies and no one company will wait for the next 2 years, instead, they will shift their mining business to another state or country where laws are favourable to the crypto mining business.
With the decision of the Proof-of-work (PoW) mining ban, New York became the first US state in history, which stepped toward a ban on mining activities in the country.
The ecosystem of New York is better for the crypto miners because of the easy access to electricity from hydroelectric power plants & ideal Coal Power plants. Last year, New York was ranked 5th biggest state in the US to contribute to the total bitcoin hash rate contribution from only US.
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