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Two Cities, Two Very Different Reactions to Crypto
Fort Worth becomes the first U.S. city to mine bitcoin. New York’s bill to put a moratorium on bitcoin mining passes the state Assembly, while a corresponding bill awaits a vote from the state Senate.
These are two very different cities with two very different reactions to bitcoin mining. What should we make of this? There are two points to be made.
The first point is that both of these cities have different energy grids and production capacities, and they will respond accordingly based on the particulars of their energy needs.
The second point is around legislative openness to new technology. Texas and Florida have advanced pro-crypto legislation and are steadily working towards adoption by signaling an openness to new business and an unwillingness to overregulate. Miami has experimented with MiamiCoin, and Texas has shown interest in bitcoin mining to augment its energy grid—and now we have a commitment from Fort Worth to engage in bitcoin mining.
New York City, on the surface, seems to have everything it needs to be the epicenter of the crypto world.
It is the global financial center.
It attracts significant talent because of its prestige, culture, and wealth of opportunities.
NYC’s Mayor Eric Adams understands the need to encourage the growth of the crypto industry in the city. He took his first paycheck in bitcoin and proclaimed:
“New York is the center of the world, and we want it to be the center of cryptocurrency and other financial innovations,” said Mayor Adams. “Being on the forefront of such innovation will help us create jobs, improve our economy, and continue to be a magnet for talent from all over the globe.” [NYC Official Website]
Since then, it’s unclear what concrete actions he has taken to ensure that NYC becomes the “center of cryptocurrency and financial innovations.”
Perhaps Adams is hindered by Albany, the keepers of the abominable BitLicense.
With each passing day, it becomes clearer that the BitLicense will be looked back on as one of the most damaging pieces of state regulation against technology and innovation in modern history. NYS/City touting it as a ‘regulatory victory’ is mind-boggling.
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