New York AG warns against crypto investments amid state push to ban mining

Please fol­low and like us:
Pin Share

As New York pur­sues efforts to ban proof-of-work (PoW) cryp­to min­ing, the attor­ney gen­er­al remind­ed investors of the risks asso­ci­at­ed with invest­ing in crypto. 

In an investor alert pub­lished Thurs­day, New York Attor­ney Gen­er­al Leti­tia James said that investors are “los­ing bil­lions” in cryp­to. James high­light­ed that even dig­i­tal assets that are well-known and are trad­ed in rep­utable exchanges can crash. Because of this, the attor­ney gen­er­al is con­vinced that cryp­to invest­ments cre­ate “more pain than gain” for investors. 

Apart from this, James urged New York­ers to take extra cau­tion when putting their mon­ey into cryp­to. Because of its volatil­i­ty, the attor­ney gen­er­al said that these invest­ments may become a source of anx­i­ety instead of a fortune. 

The pub­lished alert also high­light­ed sev­er­al fac­tors to dis­cour­age investors, which includ­ed the unpre­dictabil­i­ty of the mar­ket, dif­fi­cul­ties in cash­ing out, high trans­ac­tion costs and the insta­bil­i­ty of some sta­ble­coins. The announce­ment also remind­ed investors that the many dig­i­tal cur­ren­cies are unregulated. 

The alert came as the New York State Sen­ate passed a bill ban­ning PoW min­ing with­in the state. If the bill gets approved by Gov­er­nor Kathy Hochul, new min­ing oper­a­tions will be pro­hib­it­ed, and those with licens­es to oper­ate will not be able to renew their permits. 

Relat­ed: US ener­gy com­pa­ny opens cryp­to min­ing facil­i­ty in Mid­dle East to use strand­ed nat­ur­al gas

Mean­while, Kenya-based ener­gy com­pa­ny Ken­Gen called on Bit­coin (BTC) min­ers to pur­chase its excess renew­able ener­gy. Accord­ing to an exec­u­tive at the com­pa­ny, there is lots of space with­in the coun­try and they are eager to wel­come miners. 

As the bear mar­ket con­tin­ues, BTC min­ing rev­enue is also show­ing a down­ward trend. On May 24, the dai­ly min­ing rev­enue record­ed a new eleven-month low of $22.43 mil­lion. This is almost half of what was record­ed at the start of May 1, which was $40.57 million. 



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *