Well, it was a matter of time and although an American loves a dollar more than a good woman, the reality is that everything has a limit and with cryptocurrencies everything gets complicated. On the grounds that they are not energy efficient in their extraction, Chinese bans (very smart about that) are being extended to the United States, where a new bill to reform the Environmental Protection intended to regular Yes restrict the mining of the two main crypto-currencies in PoW in New York: Bitcoin and Ethereum.
The State Assembly has approved a project which is now unearthed and which targets companies that work with crypto assets through powWhat Bitcoin and even ethereal (until it becomes PoS) where a two-year moratorium is imposed on new mining facilities and farms with this working format that operate with carbon-based sources. What does this imply ?
First China, now New York, then the whole US without Bitcoin?
It should be clarified that all projects and companies or farms created exclusively with renewable energies or with PoS are excluded from this measure, but there are currently so few that it will affect practically all mining companies. Why are these measures taken? As we said above, the blockade of China was focused on the fact that crypto assets are not a tasteful dish for the government of said country and also suppose an energy expenditure that they cannot afford, because they knew that the energy crisis was about to explode and that the carbon sanctions exceeded and greatly exceeded what is allowable by China.
Therefore, it was a choice between global production companies or crypto and mining companies. China has been clear about this and has blocked and persecuted the practices, so companies have moved to cheaper energy countries such as the United States or El Salvador, with New York today being the first of the big nerve centers due to its ability to generate clean and cheap energya perfect destination for Bitcoin and Ethereum.
This energy production represents half of all that the state consumes, but by 2050 these figures must improve, since the goal is to reduce carbon emissions to 85% and of course, the mining cryptocurrencies such as Bitcoin or Ethereum is a problem.
No application at the moment, it’s time to move?
Many companies have spoken out against this law in New York, to the point that they have threatened to move to other states to mine Bitcoin and Ethereum. The moratorium is not yet applied because it must be accepted by the governor of the said state, but it should not really be delayed too long and that sows doubt among companies and investors.
And it is that at the end of the day, in the midst of an energy crisis, the least interesting thing is crypto assets and their mining, since this energy must be redistributed between companies, factories and homes. which generate FIAT money under the control of banks and states, but not for cryptocurrencies. This is just another nail in the coffin that they are customizing for Bitcoin, Ethereum and other cryptocurrencies because even though they have not been persecuted by EDF and ECB indirectly the reality is that energy is finite, renewables are still green, hydrogen is in its infancy and the economy does not depend on it and therefore resources will be distributed to larger sectors .
The question now is how long will it take the US and EU to ban them based on all that has been said?