Canadian Province Offers Low-Cost Energy For Bitcoin Mining via Cold Climate, Hydroelectric Power
Bitcoin miners in Canadian provinces which include British Columbia, Quebec, Manitoba, Alberta, and Labrador are enjoying the perks of low-cost energy incentives. The Canadian province fits perfectly to the needs of running a Bitcoin mining operation due to its cool climate and abundance of hydroelectric energy availability. The perfect mining condition is aided by the push by provisional governments who are offering lower power costs to attract more Bitcoin miners to the region.
The incentives program was first carried out by province of Quebec, but it had to shortly retreat the programme due to the overwhelming response it got from the Bitcoin mining community. However, despite taking back the lowered energy rates, the state is still receiving a ton of request for power from Bitcoin miners.
As per the recent reports, the biggest inflow of Bitcoin miners to Quebec is from China. The Chinese government has been quite skeptical about the crypto use in the country and have banned crypto exchanges back in 2017. However, China was still the mining hub for abundance cheap electricity, however recently the government also issued a complete ban over the crypto mining activities in the country. This has made many Bitcoin miners look towards Quebec as the province has everything these miners need. They are happy to pay standard business hydroelectric.rates.
Canada Is Moving From Resource Based Economy Towards Knowledge-Based Economy
The northern rural Canadian area which used to be brimmed with resources has seen its resource gets depleted over the years by fishery and forestry companies. Now, that the reserves of resources are on the brink of extinction, Canada is looking for other sources to drive their economy.
Take Labrador into consideration a remote and scenic eastern province which is too far from the main markets, and since the fishery and other natural resources have already been depleted, there is only one other natural resource in the form of hydropower left which the province can leverage to drive the economy. It has two huge power-generating hydroelectric dams — Churchill Falls and Muskrat Falls.
Hydroelectric power plants might look a great initiative for a resource-driven economy, but in the case of Canadian provinces where the resources are on the decline, these hydroelectric power plants have become more of a liability. The Labrador government says paying for Muskrat Falls (which cost $12.7 billion CDN to build) is one of its biggest challenges, with an estimated $726 million CDN required to meet operating costs in its first year.
Bitcoin Mining Operations Can Help Candian Provinces To Turn Their Liability Into A Resource
The depleting resources can be a cause of concern, but the inflow of Bitcoin mining activities in these provinces and the ever increasing demand of Bitcoin miners can help the province to get past its resource-driven economy and turn it into knowledge-driven one. There has been a noticeable increase in demand of Bitcoin miners lately, giving the government a ray of hope to revive the economy.
“Data businesses are expressing an interest and willingness to ‘take what’s available,’ [an anonymous official] said, and are requesting new transmission infrastructure to make more power available to them in Labrador, locating wherever the feed of power is possible”