A recent report by The New York Times (NYT) explains why there is currently a “Bitcoin boom” in the Empire State.
According to a NYT report published on December 5, cheap power and lax regulations have led to a Bitcoin mining industry to thrive in New York state. The report talks about a new Bitcoin mining business set to begin operation this month northeast of Niagara Falls at the site of a former coal-fired plant. A similar story has occurred at Massena’s former aluminum plant, which now houses one of the largest cryptocurrency sites in the United States.
Companies are scrambling to create computing farms capable of mining the profitable digital asset, particularly following its skyrocketing price throughout 2021.
The report read:
In just a few years, a swath of northern and western New York has become one of the biggest Bitcoin producers in the country. The prospectors in this digital gold rush need lots of cheap electricity to run thousands of energy-guzzling computer rigs.
New York has become an ideal location for US-based Bitcoin mining due to its cheap hydroelectric power and abundance of shuttered power plants and old factories. The abandoned infrastructure is now offering a scaffold for companies to convert to Bitcoin mining.
Despite the boom in the mining business, New Yorkers are taking note over the amount of electricity and pollution being generated by Bitcoin farms.
The report continues,
As a result, environmental groups say, the Wild West-style scramble, coupled with a lack of restrictions on Bitcoin mining, is threatening the state’s own emission-reduction goals, which call for more renewable power and rapid reductions in fossil-fuel emissions.
While Eric Adams, the recently elected Mayor of New York City, has envisioned the city as a hub for digital assets, the state is currently lacking regulations and oversight for crypto mining.
Some lawmakers are looking to put a curb on the environmental impact of mining, with the State Senate approving a bill in June that would impose a moratorium on fossil-fuel-powered mining. The bill was ultimately struck down by the Assembly, but has been part of a greater movement to bring legislative awareness to New York’s crypto mining industry.
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