It has been rumoured in the last months and weeks that Canada could be the next hub for Bitcoin miners. China is worried about the electricity consumption used by the Bitcoin mining industry. That’s why, cryptocurrency miners were searching new places in the world so as to keep with their activities. Canada was one of these places, more specifically, Quebec’s province. But it seems that Canada’s Hydro Quebec will not have long-term capacity to meet all the demand.
Canada Can’t Take All Bitcoin Miners
Canada has been one of the most interesting places that Bitcoin miners searched for to settle their bitcoin mining farms. But the reality may be different. Hydro Quebec will not be able to power all the mining farms.
The bitcoin mining activity requires large quantities of energy. The mining hardware used for this activity processes complex math puzzles in order to validate transactions. In this way, the transactions are added to the blockchain.
Many miners located in China are following very closely the decisions that the government may take. Different sources believe that the government may limit the cheaper electricity supply for the Bitcoin mining farms. Canada was one of these places where Bitmain and others were thinking to install their operations. At the moment, Bitmain has bitcoin mining farms in Canada but they did not specify where.
Marc-Antoine Pouliot, the utility supplier’s spokesman, said that it is not possible to fulfil the demand of the cryptocurrency miners that want to operate in Quebec’s province.
“We are receiving dozens of demands each day. This context is prompting us to clearly define our strategy. We won’t be able to power all the projects that we’re receiving. This is evolving very rapidly so we have to be prudent.”
Canada, Russia, Switzerland
Bitcoin miners use to search for places with specific characteristics that make Bitcoin mining a profitable activity. For example, it is important to have easy access to electricity and at lower prices. China, Canada, Switzerland and Russia offer relatively cheap electricity.
It is important to mention that the climate plays an important role at the time of installing a bitcoin mining farm. When ASIC hardware do their job they need low temperatures to not heat more than what is recommended. In addition to it, they require a proper ventilation to keep them fresh while running.
China has been one of the favourite places for bitcoin miners to work. But there is a key factor that enterprises have in mind when investing there, the political risk. In Canada and Switzerland this risk is almost reduced to zero. Uncertainty plays an important role for this enterprises. That’s why we need to think that in the coming years, bitcoin mining farms may accept higher costs for electricity as long as the stability is assured.
Russia could also be one of these places were Bitcoin miners find their place. Indeed, Russia has low temperatures, and an important excess of electricity. Bitcoin miners will be able to settle in this Eurasian country if the local authorities establish clear rules on the mining industry.
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