New York State today denied permits to a gas-fired power station that mines Bitcoin. This was a blow for Bitcoin miners. 

This is the latest move New York has made to clamp down on crypto mining to achieve its climate change goals.

New York set a goal in 2019 to reduce its greenhouse gas emissions by at most 85 per cent in the next few years. Greenidge is being viewed as a test to see how serious the state takes this goal. 

Will it be tough on the lucrative Bitcoin market that boomed in New York since China expelled miners last year? The New York Department of Environmental Conservation determined that Greenidge was not complying with the Climate Act's greenhouse gas emission limits.

Greenidge was a coal-fired power station for many decades. The plant was a coal-fired power plant for decades. However, as natural gas became more affordable, it was forced to close down temporarily.

In 2017, the plant switched to gas. In 2020, the plant operators discovered a more lucrative venture and began mining Bitcoin. This now accounts for the majority of the company's revenue.

Bitcoin is the most polluting cryptocurrency. This is not because it's most popular but because it relies upon a very energy-hungry security mechanism to keep its ledger correct.

Bitcoin miners use specialized computers that solve increasingly complex puzzles to verify transactions and gain new tokens. 

All this computing power is dependent on a lot of electricity. This can cause greenhouse gas emissions and other pollutants if the power plant uses fossil fuels.

"This is step one towards addressing energy consumption, climate concerns, and crypto mining.

We're still waiting for the governor to sign legislation to address this issue more broadly. We celebrate today," Elizabeth Moran, a policy advocate at Earthjustice, an environmental non-profit organization, said.

Today's decision will not immediately close the plant. Greenidge will appeal the decision and continue to operate as usual. The company stated that it can continue to operate as normal under its Title V Air Permit. This permit is still in force.