New York And Its Ban On Cryptocurrency Mining

The cryptographic revolution is creating its mark throughout the world’s countries, just as many have taken advantage of its benefits to Choose Bitcoin, such as financial entities and government entities that do not like it very much. 

What is Bitcoin mining?

It is the fundamental process for DIGITAL CURRENCIESto be generated, where miners take full advantage of computing power to validate a set of transactions that, in turn, give them benefits for deciphering the complex mathematical calculations grouped into logarithms.

The purpose of CRYPTOGRAPHIC MINING is to add blocks in the records of transactions or operations carried out by users of digital currencies, where only through the consensus of the miners can say block be approved.

This process can only be carried out using high-tech equipment whose graphical interface allows it; energy consumption is another relevant aspect since it requires a lot of energy to mine Bitcoin, for example.

Disagreement between New York and cryptocurrencies

We have recently seen how the city of New York is making every possible effort to eliminate and ban Bitcoin mining processes in the territory of the Big Apple, all this in consequence that mining represents excellent risks.

The most common risks attributed to Bitcoin mining are the environmental ones and those that cryptographic investments commonly possess.

The central alarm went off after witnessing the fall of cryptocurrencies and the millionaire losses in which many investors have unfortunately been dragged.

Although this situation is not only transitory for digital currencies since the traditional assets listed on the stock market are also affected by the economic conditions the North American State is going through and factors external to its borders.

According to statements offered by the Attorney General of the State of New York, Letitia James, she suggests that there are more headaches generated by digital currencies than profits for their users and parties involved by referring to the Exchange.

The best suggestion when investing is to consider the volatility of cryptocurrencies; this issue is not new to any crypto investors, and the current situation is affected by factors outside the digital market.

The anxiety, anxiety, and need for market stabilization mean that its users sell their crypto assets at prices much lower than what they bought. That is where impulsive decisions play against investors.

A draft Mining Ban Act for New York

In April, the First Bill against cryptocurrency mining was approved in New York. The primary objective is the prohibition of this activity for two consecutive years.

Companies dedicated to cryptocurrency mining are in complete disagreement; even with this new law, the license renewal is put at risk so that they continue to operate in the State of New York territory.

The central policy is protecting the environment, so if a company carries out this type of activity, it should only do so by strictly using renewable energy.

This project is not only endorsed by the Government of New York but also by a group of companies such as Greenpeace and, of course, the co-founder of Ripple. They emphasize the impact of mining on the environment and the high wear on the ecosystem.

The main objective is to reduce energy consumption, thus complying with the various international regulations for environmental protection.

Although the bill has supporters, those who disagree with this new regulation have also spoken out. If it comes into force, it could significantly affect the income of many households whose jobs are directly related to the companies that carry out mining operations.

New York is one of the states with the highest energy consumption in the world; what is not known is that practically 50% of this energy comes from renewable sources.

Even so, many business leaders disagree that this state policy is executed because this type of economic activity contributes to the state’s socio-economic development through the generation of jobs and impulses to the economy.

Conclusion

One more regulation that adheres to cryptocurrencies indicates that, over time, they are ceasing to be an invisible option since they are positioning themselves in the financial market from the perspective of mining and investments.

Risks exist in any investment; the secret knows how to see the opportunities and invest at the right time.