New York Senate passes bill to ban Bitcoin mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. over environmental concerns.
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- New York Senate passes PoW mining bill.
- It includes a 2-year moratorium on new mining projects.
- Current miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. can continue to operate.
The New York State Senate passed a bill a few hours ago that targets the mining of Proof of Work (PoW) in an effort to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. some of the environmental concerns surrounding cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. mining. This further approves it a day after it became known that the White House itself (i.e. the National Executive) is preparing policies. to combat the environmental impact of mining Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. .
The bill, which f The resolution was adopted by the New York Assembly in April, would impose a two-year moratorium on any new carbon-based fuel PoW mining project in the state, although existing mining companies or those currently in the permit renewal process may be allowed to continue operations.
El Senado votó 36-27 a favor del proyecto de ley.
According to the bill’s Democratic sponsor, Senator Kevin Parker, There is currently only one such plant in operation, which would not be affected by the bill. He added that there is one pending application, which may be held in abeyance until the study is completed.
During the moratorium, the state will conduct a study on the potential environmental impacts of proof-of-work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. mining.
Surprising approval
According to media outlets such as Coindesk, many expected the bill to die in committee, as happened with last year’s version of the bill, after the Senate Environmental Conservation Committee refused to consider it during its last meeting of the session. In fact, the committee’s chairman, Senator Todd Kaminsky, told CoinDesk in May that he was concerned that the bill could have “damaging economic consequences for New York if people perceive it as hostile to cryptocurrencies.”
However, a last-minute referral of the bill from the Environmental Conservation Committee to the Senate Energy and Telecommunications Committee (which is chaired by the bill’s sponsor, Senator Parker) on Thursday night meant that the bill was able to get to the Senate floor and voted on before the legislative session closed at midnight.
On many occasions, city agencies have warned about the harms of cryptocurrency mining. For example, in 2020, the New York Department of Financial Services did it. .
Missing signature
New York Governor Kathy Hochul must still sign the bill before it can become law.
New York has long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. been seen as a place for cryptocurrency companies to set up shop due to cheap hydroelectric power sources. In more recent years, mining companies have also repurposed obsolete coal-fired power generation facilities. Greenidge Generation, for example, renovated one such facility to operate on natural gas.
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Sources: New York Senate, Coindesk , Finbold, archivo
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