Regulations on cryptocurrencies change for the better or for the worse these days. In fact, despite the popularity of cryptos, there is no single consensus on how to treat the entire crypto market. And unfortunately, people are at the mercy of regulators.
The same is true for crypto mining. Canada is a popular place where crypto miners can take advantage of low temperatures and low-cost electricity. The good news is that Quebec has now lifted its ban on crypto mining.
To understand the nature of crypto mining, it is needed in order to confirm transactions. However, things aren’t as simple and straightforward. Gone are the days when you can mine cryptocurrencies using your own personal laptop at home. These days, you will need to invest in expensive graphics cards and hefty electric bill in order to make a profitable business.
Quebec’s Tech-Oriented Nature
Quebec is Canada’s tech-oriented region. In fact, it isn’t surprising that cryptocurrencies are quite popular in this part of Canada. However, one of the issues that Quebec had with cryptocurrencies the electricity extensive nature of cryptocurrency mining.
The good news is that the ban has been lifted. The government has confirmed that they are going to sell electricity to miners once again. Instead of banning companies, their goal is to build a friendly relationship with companies and businesses that are in search of a cheaper source of electricity.
Because of the hydroelectric power stations in this part of Canada, Quebec has become appealing to miners. Aside from the recent ban being lifted, China is also cracking down on crypto activities including mining. And for this reason, Quebec just became more appealing.
Hydro-Quebec spokesperson Marc-Antoine Poulit mentioned that “Having interruptible customers during critical periods make it possible to connect more. (Hydro-Quebec’s mandate) is to ensure the implementation of cryptocurrencies in Quebec by maximizing economic benefits and ensuring the stability of our electricity supply”.
Just how much is cheap electricity in Quebec? You get electricity that is priced at around $0.0248 to $0.394 per kilowatt hour.
It is no secret that crypto mining takes an insane amount of energy. Sooner or later, Bitcoin mining will consume more electricity than Austria according to a particular study. According to a study, around 7.7 gigawatts of electricity will be needed in order to mine Bitcoin by the end of the year.
And for this reason, countries that have cheap electricity make a strong candidate where miners can operate. Venezuela, for instance, has been a place where crypto miners operate considering the price freeze implemented by the Maduro regime. However, the country also made some changes in its rules. Considering the hyperinflation in Venezuela, it seems that cryptos would most likely replace their local currency forcing the Venezuelan government to stop the importation of crypto hardware.
Will more countries accept crypto mining companies? Considering the amount of energy needed in order to run crypto mining operations, will more countries resort to cleaner sources of energy such as that of Quebec with its hydroelectric power plants?