Mati Greenspan Says Why Russia, Canada Can Become Crypto Hubs if China Bans Mining Activities
Some reports spread about China banning crypto mining activities in the country due to the fact that it is an inefficient and contaminating industry. However, there are several countries that could become new crypto hubs if the ban becomes a reality.
Mati Greenspan Thinks Canada And Russia Could Become Crypto Hubs
During a recent interview, Mati Greenspan, eToro’s senior market analyst, said that Canada and Russia could be the countries where miners could move if China bans crypto mining activities. Mr. Greenspan explained that there are two main factors that would attract crypto miners. The first thing is related to cheap electricity. If a country has cheap renewable energy it could be a good place where to start a mining firm. The second thing is related to legislation and the attitude of a country towards virtual currencies.
“The two biggest ones are Canada and Russia, both of them have seen significant increases in their mining activity lately,” commented Mr. Grenspan.
A few weeks ago, a Wall Street article unveiled that there was a company in Canada using wasted gas in order to mine Bitcoin (BTC). In this way, the firm found a way to monetize gas that would otherwise not be used.
Russia and Canada have friendly regulations on virtual currencies. According to Greenspan, Russia is “extremely pro-crypto.” The country is currently planning to implement crypto regulations by July 1, 2019. Some issues such as Initial Coin Offerings (ICOs) and crypto mining activities will be addressed by these regulations.
It is worth mentioning that both Russia and Canada have colder climates. This is also very important for miners at the time of analyzing the costs of running a mining farm. Overheating is an issue that miners face and that requires a lot of energy. In order to keep the miners cool, it is necessary to use large amounts of energy, allowing the miners to operate in a more efficient way.
In China, miners have been consuming cheap electricity that was pretended for cities and industrial parks. Authorities in the country have already banned cryptocurrencies and trading activities, thus, mining crypto mining wouldn’t be an issue for the government.