The state also has a chilly climate, which means less energy is needed to cool down the banks of computers used in crypto mining, as well as a lot of abandoned industrial infrastructure that's ripe for repurposing. Crypto mining company Coinmint, for example, operates a facility in a former Alcoa aluminum smelter in Massena, which taps into the area's abundant wind power, plus the cheap electricity produced from the dams that line the St. Lawrence River.
"Proof-of-work mining has the potential to lead the global transition to more sustainable energy," Boring told CNBC's Crypto World, pointing to the irony of the moratorium."The bitcoin mining industry is actually leading in terms of compliance with that Act." "In my mind, a lot of this stuff is going to end up pushing activity to other places that might not achieve the goal of the policymakers," said Yang.Data from digital currency company Foundry shows that New York's share of the bitcoin mining network dropped from 20% to 10% in a matter of months, as miners begin migrating to more crypto-friendly jurisdictions in other parts of the country.
As Boring points out, New York is a leader when it comes to state legislation, so there is also the potential for a copycat phenomenon rippling across the country. However, many others in the industry think concerns over the fallout of a mining moratorium in New York are overblown. Feinstein and other miners point out that there are plenty of friendlier jurisdictions: Georgia, North Carolina, North Dakota, Texas and Wyoming have all become major mining destinations.