Anthony Pompliano Cautions New York Authorities on Plans to Ban Bitcoin Mining in Recent Newsletter
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Free Crypto Signals Channel
Free Telegram Channel
Pompliano detailed that New York passed a bill on Thursday to enforce a ban on Bitcoin’s mining process in the state. If signed by the Governor, New York would become the first American state to “attack” Bitcoin, he explained.
The seasoned entrepreneur highlighted three critical issues to be discussed concerning the situation in the newsletter.
Anthony Pompliano Details Potential Negative Effects of Attacking BTC Mining Sector
First, he detailed that China was the last large jurisdiction to adopt such an antagonistic stance against Bitcoin. With the Asian giant accounting for 65% of the global hashrate, the Chinese ban triggered a 50% drop in Bitcoin hash power as miners migrated to more hospitable jurisdictions. However, Pompliano explained that this action only boosted Bitcoin’s mining prospects as the network’s hashrate tapped a new all-time high seven months after the ban. The entrepreneur boasted in the letter that Bitcoin would likely survive this new attack from New York, given its resilience.
His second point was that New York’s attempt to ban Bitcoin mining would not be easy for the authorities to parse. Pompliano explained that all BTC mining rigs are simply solving math problems, and attempting to ban mining is equivalent to placing a ban on computers doing math in the area, a decision he claims would have immense “ramifications.”
Pompliano called out the authorities for discriminating against a specific computer science algorithm, arguing that all algorithms should be treated equally.
Finally, “Pomp” asserted that the authorities are underestimating the economic impact of banning BTC mining activities, considering that cryptocurrency is one of the fastest-growing industries in the world. With the number of jobs and millionaires crypto has created, banning an integral crypto activity like Bitcoin mining would send this booming industry packing, inflicting huge economic implications for New York and the US, he explained.
Pompliano called on the preservation of free markets, noting that the intervention of governments and politicians in markets usually makes things worse. He also called on the authorities to focus on more critical issues to tackle climate change issues, noting that Bitcoin mining was the least of their problems.
You can purchase Lucky Block here. Buy LBlock
