Bitcoin and Ethereum fall; NY bill limits energy usage

Bitcoin, the leading cryptocurrency internationally, traded lower on Tuesday, falling by 5.33 percent to $29,491.15.

Ethereum, the second most traded cryptocurrency, was priced at $1,752.33 down by 6.49 percent, according to data from Coindesk.

NY bill limits crypto miners’ use of fossil fuel-generated energy

New York legislators have passed legislation that prohibits fossil-fuel power plants from producing electricity for Bitcoin miners, but Governor Kathy Hochul has not yet decided whether to sign it.

“We have to balance protection of the environment, but also protect the opportunity for jobs that go to areas that don’t see a lot of activity, and making sure that the energy that’s consumed by these entities, is managed properly,” the governor said in a statement on Monday.

For cryptocurrency mining to work, computer systems need a large amount of electricity to process mathematical puzzles to validate blockchain transactions. Those who solve the puzzles first are rewarded with cryptocurrency, the statement added.

In April, the state assembly passed the bill, and the Senate passed it late last week.

In an effort to reduce emissions by 85 percent by 2050, the bill is part of the state’s greenhouse gas reduction plan.

The bill declares that cryptocurrency mining operations in the State of New York “are an expanding industry” that will result in higher energy consumption in the state.

The bill would forbid the issuance or renewal of an air permit for an electric generating facility that utilizes a carbon-based fuel and provides energy for cryptocurrency mining, the statement concluded.

Bitcoin, Ethereum, and crypto mining consume 2% of total electricity in Russia

Approximately 2 percent of Russia’s total electrical energy consumption is used to mine cryptocurrency, according to a recent estimate.