Cryptocurrency mining often requires huge amounts of electricity, especially for Proof-of-work chains Like bitcoin. Sometimes that power comes from fossil fuels, which New York State wants to limit.
New York Governor Kathy Hochul signed into law a bill on Tuesday aimed at limiting the use of environmentally harmful fossil fuels in cryptocurrency mining. It sets a two-year moratorium on new, renewable air permits for fossil-fueled power plants used in energy-intensive cryptocurrency mining. The law also instructs the New York Department of Environmental Conservation to assess how cryptocurrency mining might affect the state’s climate goals.
“I will ensure New York continues to be a center of financial innovation, while also taking important steps to prioritize protecting our environment,” Governor Hochul said in a statement.
Environmental impact is a common criticism of cryptocurrencies, as many blockchains are built on proof-of-work, which uses large amounts of energy to verify each transaction compared to regular banks and digital payments. Newer blockchains use a more efficient proof-of-stake model, but not Bitcoin and some others. Ethereum Blockchain Moved to Proof of Stake earlier this year.
The heavy use From Fossil fuels It is one of the most important problems of cryptocurrency. Many other industries rely heavily on fossil fuels, but at least you usually get something useful in the end, like a car or computer. Pumping toxic fumes into the air mining bitcoin gets you money This is not good for being money.
source: News agency