New York Immediately Bans Bitcoin Mining, Attorney General Warns Of Dangers Of Crypto Investment

JAKARTA - As the New York state government pursues efforts to ban crypto proof-of-work (PoW) mining, the Attorney General is also reminding investors of the risks associated with investing in crypto.

In an investor warning published Thursday, June 2, New York Attorney General Letitia James said that investors could “lose billions” in crypto. James highlights that even well-known digital assets traded on reputable exchanges, such as Bitcoin, can crash. Because of this, the attorney general believes that crypto investing creates “more pain than gain” for investors.

The cryptocurrency market is extremely unpredictable. Just last month, the market reached record lows and investors lost hundreds of billions. New Yorkers should be cautious and think twice before putting their hard-earned money into this unstable market.

— NY AG James (@NewYorkStateAG) June 2, 2022

Despite this, James urged New Yorkers to be more careful when putting their money into cryptocurrencies. Because of their volatility, the attorney general said these investments could be a source of anxiety, not wealth.

The warning issued also highlights several factors to deter investors, including market uncertainty, difficulties in cashing out, high transaction costs and the instability of some stablecoins. The announcement also reminds investors that many digital currencies are not regulated by governments.

The warning came as the New York State Senate passed a law banning PoW mining in the state. If the bill is approved by Governor Kathy Hochul, new mining operations will be banned. Those who have a license to operate will not be able to renew their license.

Meanwhile, Kenya-based energy company KenGen is asking Bitcoin (BTC) miners to buy their excess renewable energy. According to an executive at the company, there is a lot of space in the country and they are eager to welcome Bitcoin miners.

As the bear market continues, BTC mining revenue is also showing a downward trend. On May 24, daily mining revenue hit a new eleven-month low of USD 22.43 million. This amount is only half of what was recorded at the beginning of May 1, which was 40.57 million US dollars.