Kevin O’Leary: “New York State’s Mining Ban Would Be a Huge Mistake”

The host of the show Shark Tank believes that the prohibition of mining cryptocurrencies based on the Proof-of-Work algorithm will stop the inflow of capital into the state treasury.

In April, a group of lawmakers petitioned the US Environmental Protection Agency (EPA) to ban the mining of cryptocurrencies using the Proof-of-Work (PoW) consensus method. The proposal has found support among environmental activists who believe that bitcoin mining degrades the environment, increases noise pollution and requires a lot of electricity.

Kevin O’Leary thinksthat the ban will only scare away the cryptocurrency business from working in the state. The entrepreneur complains that the policies in the states of New York, California and Massachusetts regarding cryptocurrencies are so vague and unstable that he would rather not invest in the economy of these states at all.

The Senate has not yet voted on a bill to ban cryptocurrency mining using PoW. But if the project is accepted, it will be a huge mistake, says O’Leary. According to him, the state has not been able to find a use for excess hydroelectric power, which could serve as an alternative source of electricity for miners. The state government can get more taxes from it and create good jobs, but by their actions they only stop attracting capital.

The entrepreneur singled out the states of Florida and Texas, whose authorities are striving to develop the mining and cryptocurrency industry. O’Leary recently stated that nuclear and hydropower will play an important role in the mining industry “which will save the world.”

The billionaire called the Terra project just a failed experiment. O’Leary compared algorithmic stablecoins to “fun in Las Vegas”. The entrepreneur believes that after the collapse of Terra, lawmakers will clarify the regulation of crypto assets, in particular, stablecoins, and this will promote healthy competition between various projects.