Cryptocurrency mining is a booming business for a lot of individuals. In fact, many are mining cryptos instead of investing directly in cryptocurrencies. However, because of the increasing difficulty of algorithms, there is a need to also have computers that can carry out the task. And for this reason alone, it has alarmed countries mainly for crypto mining’s electricity consumption. Some are even saying that Bitcoin mining consumes as much energy as Ireland.
Canada is a place that has been considered by miners as the ideal place to start crypto mining operations. Cheap electricity and cold weather, these are things that make crypto mining operations profitable. Recently, Quebec lifted its ban on crypto miners. When they started accepting applications, many crypto miners originally from China expressed their intention to migrate their operations in Quebec. And for this reason, Quebec decided to halt the applications for new crypto miners.
A Different Rate for Miners
The primary reason why Quebec is looking forward to absorbing crypto miners is due to the fear that the province could miss out on the potential revenue of the booming industry. However, it isn’t simple at all since it may require a large amount of energy. The goal is to not affect the residents even if Quebec takes in miners to operate in the province.
Quebec Minister of Energy Pierre Moreau provided a decree that provided new regulations on crypto mining operations that are looking to buy electricity from the province. And under the new rules and regulations, Quebec’s officials decided to ask the crypto miners to pay a higher rate. And also, the new rules mean that Hydro-Quebec will have the license to cut the power supply to miners in case the grid is at a maximum capacity.
According to the spokesman of Hydro-Quebec Marc-Antoine Pouliot, “Having interruptible customers during these critical periods makes it possible to connect more”.
Consumption of 10 TWh
There are around more than a hundred crypto mining companies interested to what Quebec can offer. The total consumption is at an estimated 10 TWh. This is crucial because this would mean the consumption of the majority of the 13 TWh surplus energy produced by the province.
Earlier this year, Quebec closed its doors to crypto miners. It fears that Quebec won’t be producing enough energy to cover the increasing demands of the crypto mining companies. According to Quebec Premier Philippe Couillard that time, “If you want to come settle here, plug in your servers and do Bitcoin mining, we’re not really interested” He added that “There needs to be added value for our society; just having servers to do transaction mining and acquire new bitcoins, I don’t see the added value”.
Crypto mining today is booming despite the bearish trends in the crypto market. It can be a profitable business with countries like Canada. However, it is still in the hands of the regulators whether or not they are going to welcome businesses with open arms or not. Is the new industry really worth investing in considering the environmental impact that it can make?