Bitcoin miners assume NY ban will be ineffective and will “quarantine” the state

Miners believe that New York’s legislative efforts to get Bitcoin miners out of their states will fail in the long run as other states invite miners to improve their power grids.

Two bitcoin miners have told Cointelegraph that if the bill banning proof-of-work mining in New York for two years becomes law, it will trigger the expulsion of mining companies from the state and rarely address the purpose of the suspension.

On June 8, GEM Mining CEO John Warren told Cointelegraph that he and other miners now see New York as an unfavorable place where they probably don’t want to open a store.

“Miners won’t consider going there after the ban became part of the discussion.”

Environmental stability is at the heart of the New York State government’s argument against proof-of-work (PoW) mining.  The controversial mining ban bill would ban any new mining activities in the state for the next two years.  It will refuse to renew the licenses of those already working in the state unless it uses 100% renewable energy.

GEM Mining recently expressed his concern that the bill would not only miss its target but also discourage new, renewable-based miners from doing business in the state.  Warren told Cointelegraph that his operation was already 97% carbon neutral.

GEM Mining is a South Carolina-based Bitcoin (BTC) mining operation. It contributes 1.92XH (s) (Exhash per second) of hash power to the Bitcoin network until May.

Similarly, Andy Long, a digital asset miner and CEO of Sweden-based White Rock Management, believes that Bitcoin mining is “moving in the right direction toward fossil-free energy use, ” as he commented in an emailed comment to the Cointelegraph.

The company claims itself on its 100% reliance on hydroelectric power for its contribution of 712 petahash per second (PH / s) hash power.

About the idea of the PoW mining freeze Long echoed “would not have the intended effect and sends the wrong message.”

“We want to see more states and local governments encourage investment rather than stifle growth with prescriptive regulations that would likely be the thin end of the wedge.”

According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), about 10% of hashing power in the United States comes from New York.  It became thus the fourth largest producer in the country.  As of April, miners in a survey with the Bitcoin Mining Council indicated that about 58% of the energy used for mining comes from sustainable sources.

The bill, if enacted, would see the outflow of mining companies from New York to other states, just as miners fled China after a mining ban last year.

However, Warren of GEM Mining believes that whether the suspension takes effect or not, other states’ contributions will continue to increase, adding that it will probably not have the domino effect of other sanctions, except  “how New York goes, Cali goes.”

He further said that even if Governor Hochul signed the suspension on the law, “New York’s hashpower will be reduced anyway as Kentucky, North Carolina, Texas and other states add new incentives for miners.”

“What you’re seeing throughout the country is a bipartisan support of mining and the jobs that they provide. They add stability to the power grid as well.”

New York is already losing competition with states like Kentucky and Georgia for miners.  Georgia is the top state in the United States for hash power.  Fortune reported in February that miners could flock there for the opportunity to offset their emissions with the average low cost of electricity and renewable credit.  Georgia generates 35.6% of its electricity from nuclear and renewable sources.

Andy Beshear, Governor of Kentucky signed into law last March a tax incentive for bitcoin miners who set up shop and support the state’s renewable energy infrastructure.  Kentucky exceeded New York’s hash power for third place in the union but produced only 6.6% of its electricity from renewable sources.

The controversial mining bill currently sits at the desk of New York Governor Kathy Hochul, who has not yet made a public commitment to sign the bill.  As an alternative, he noted that his team would look at the proposal “very closely” in the next few months.