New York businesses urge governor to deny crypto mining permits

Businesses in New York have reached out to Governor Kathy Hochul to demand a ban on crypto mining, citing environmental concerns. In a letter, business owners and worker groups called on Hochul to deny permits to convert New York’s fossil fuel plants into crypto mining centers. Crypto mining is the process of generating new tokens. In the case of ‘proof-of-work’ style cryptocurrencies like Bitcoin, this is done by solving complex mathematical problems using advanced computers and the process has been criticized for consuming too much power while increasing costs. carbon emissions.

Two former fossil-fueled power plants, Greenidge Generating Station and Fortistar North Tonawanda, located in the New York tri-state area, are being considered for conversion into crypto mining facilities. This idea has generated negative reactions from many local businesses concerned about electricity consumption and environmental impact.

“Proof of work cryptocurrency mining uses huge amounts of energy to power the computers needed to conduct business. letter said.

Further, the letter suggested that refueling fossil-fueled power plants would seriously jeopardize the state’s progress and fulfillment of mandates to reduce greenhouse gas (GHG) emissions.

Hochul’s response to the request remains awaited for now.

According to a research report, cryptocurrency mining hardware is constantly running, which consumes power. Between January 1, 2016 and June 30, 2018, mining operations for four major cryptocurrencies released up to 13 million metric tons of carbon dioxide.

The massive energy consumption required by mass-level crypto trading and its effects on greenhouse gas emissions have been of concern to many countries, including China, Russia, and Morocco, among others.

In fact, last month China criminalized crypto activity, with its massive energy consumption being a major cause for concern.

“This may in fact be due in part to power shortages in many parts of China. Much of southern China is currently experiencing random power outages as demand for electricity is higher than expected. Crypto mining could play a role in that, ”said Elon Musk, commenting on China’s decision at the time.

In recent times, however, crypto-mining activities are tied to clean energy resources so the process is decarbonizing.

For example, El Salvador, a country in Central America, also powers its Bitcoin mining facility using geothermal volcanic energy.

Francis Suarez, the mayor of the US city of Miami, has also proposed to set up a Bitcoin mining facility near a nuclear power plant in the state of Florida. According to the Latest News news site Today, nuclear energy is on the verge of being recognized as a true environmental, social and corporate governance (ESG) solution for energy.

Despite opposition from major nations like China and Russia, the crypto-space is experiencing rapid global expansion.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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