New York Just Says No to Carbon Emitting Crypto

Posted on Sunday, Dec 4, 2022 by Ned Bellavance

Featured in this episode of Chaos Lever

In yet more bad news for the crypto world, New York State has enacted a bill that establishes a two-year moratorium on applications or permits for an electricity generating facility that utilizes a carbon-based fuel and that provides behind the meter electric energy consumed or utilized by crypto-currency mining operations that use proof-of-work authentication methods.

Or, in simpler terms, Crypto bros are no longer allowed to reopen closed coal-burning power plant to fuel their mining bullshit.

As we’ve covered extensively in the past, proof-of-work based blockchains require large amounts of computation by the mining systems to participate in the network and earn those sweet, sweet crypto tokens. Mining rigs are loaded up with massive GPUs that suck down kilowatts of power for breakfast, lunch, and dinner. No word yet on brunch or linner.

Many of the mining operations were running out of China, where environmental regulations were rather lax, but recently the PRC has cracked down on crypto mining, pushing miners to move to greener pastures that they can despoil. Said pastures happen to be in the US, which now comprises 38% of the world’s miners. And the power for those miners? Why pay a power company, when you can generate it yourself by buying a retired coal plant and firing it back up. Jesus these people are just the worst.

The new law in New York State will prevent the issuance of new permits to take over these greenhouse gas belching power plants, and it will also force existing crypto-mining companies in the state to be subject to a generic environmental impact statement. We can only hope that other states in the US swiftly follow suit and put the kibosh on reopening coal plants across the country to make fake money for rich assholes.