China was once a hotbed for cryptocurrencies, ranging from trading to mining due the trade being largely unregulated and traders and miners alike were more or less allowed to do as they pleased in a country which provided infinite cheap electricity. However since 2017 things began to change and regulations were enforced against exchanges initially and now it appears mining maybe regulated and banned too. So as China considers a ban on cryptocurrency mining, many miners are left pondering over their next move where they can have supply of cheap electricity in a region which is favorable to Bitcoins.
The solution? Canada
Hydro-QueBec still has around 5000MW of surplus electricity that it produces and is looking for companies and even Bitcoin miners to purchase the surplus of renewable energy and electricity at a very favorable price. This is exactly what Eric Martel the CEO of Hydro-QueBec is trying to achieve as Bitcoin mining currently consumes as much power as a small country and requires a cool and cold environment to cool down the miners and reduce costs in terms of cooling equipment, something Quebec’s weather could provide.
Even though other Nations can provide cheap electricity too and cold weather, another advantage with mining in Canada is due to its political stability and the Nation’s policies which are still seen as being favorable for the Bitcoin. With Canada being ranked top 10 on the economic freedom index, it is extremely unlikely we will see stringent regulations being placed on the Bitcoin or mining anytime soon. Thanks to numerous advantages Canada offers, many mining operations are considering a move to Canada with Chinese mining pool BTC.top announcing such a move as it plans to build a farm in Canada due to low cost, abundance of electricity and the nations favorable policies and regulations.
Demand is skyrocketing
David Vincent who is the business development director at Hydro-QueBec stated that despite the company initially seeking traditional organizations to build their data centers and so forth in the region using their electricity, their was still vast amounts of excess electricity available and the organizations simply couldn’t fill the amount of supply available. However in the last few months the demand for electricity by Bitcoin mining operations has skyrocketed with them now accounting for a majority of total wattage capacity available in the development pipeline and a further 35 organizations potentially planning a move there. David Vincent further went on to state that demand is so great there is no need to advertise anymore as organizations contact him daily and the company hopes the entire surplus of electricity will be filled in the near future.
Good for miners, the economy and the local people
Miners moving to Canada for its abundance of cheap hydro-power is not just good for miners themselves but also for the local economy as it further creates jobs ranging from technicians, miner sales, warehouse management, land development, building related jobs and so forth. It also addresses a key grievance locals may have with the Government as initially the company was not doing so well and locals faced electricity tariffs to make up for the losses. However if miners are able to buy the surplus in electricity locals will no longer be faced with the possibility of high electricity tariffs and this is exactly what the company aims to do and is on the path to achieving. Such a prospect is economically unfavorable and politically unfavorable so we may see Canada’s favorable attitude towards the Bitcoin and miners continue into the near future.
To conclude, the recent regulations against miners in China arguably should not hurt the price of the Bitcoin itself as it would mean less supply of the coin but such regulations do further add to the uncertainty the Bitcoin is facing. However in Canada where there is more economic and political certainty for miners themselves, it could prompt them to move en mass to other regions of the World with Canada arguably being the most attractive option not in terms of just profit but also in terms of its political stability.