Cryptocurrency mining is said to have environmental concerns with the growing size of the industry. The mining operation requires a massive amount of energy and it generates heat as well. Citing these impacts on the environment, New York reported to take a bold move in this direction.
On 22nd November, a law was signed and New York Governor Kathy Hocul said that she will ensure that the state continues to remain the center of financial innovation. Along with this, crucial steps would be taken prioritizing the environment protection.
According to the new law, further issuing and renewal of air permits was provided to those companies which turned some of the oldest fossil fuel plants and developed crypto mining hubs out of them. However, individual crypto miners will be discounted from the ban.
The said law is reported particularly for crypto mining companies within the New York state. Such companies consume a lot of energy since they use the energy intensive PoW crypto authentication. This process could even demand millions of mining devices at the same time.
These mining devices count in millions are likely to generate enormous emissions since it consumes a lot of energy. The electricity generation requires burning of huge amounts of coal, gas and similar fossil fuels.
China was the largest hub for crypto mining operations which were shredded after complete ban on crypto and crypto activities in 2021. In search of a new spot, New York came as a prominent choice for the mining operations. Electricity availability at cheaper rates was possible in the region due to Niagara Falls.
But as businesses flocked to the area, environmentalists raised concerns about the potential negative effects of cryptocurrency mining.
Additionally, as part of the state’s efforts to lower its carbon footprint, the new law mandates that the Department of Environmental Conservation of New York conduct an investigation into the environmental effects of the cryptocurrency mining sector during the two-year moratorium.
According to a White House report, the country-wide carbon pollution from U.S. crypto mining ranged between 25 and 50 million metric tons. The Environmental Protection Agency estimates that would be roughly equivalent to operating 20 to 40 million gasoline-powered vehicles for a year.
Concerns concerning its energy use and carbon emissions have been addressed by the cryptocurrency industry.
In September, Ethereum, the second-largest blockchain behind bitcoin, moved to proof-of-stake, a more energy-efficient technique of confirming crypto transactions made on the network (PoS).
On its website, Ethereum claims that this improvement would reduce its carbon footprint by over 99%.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/27/new-york-state-to-put-ban-on-crypto-mining/