Quebec To Lift Ban On Electricity Supplied To Cryptocurrency Miners
Recent events have prompted the Quebec government to plan on removing the ban on electricity for cryptocurrency mining such as Bitcoin and Ethereum. Fears of an energy crisis from the absorbent amount of electricity that cryptocurrency mining costs caused the government to institute a ban on allowing the predominantly Hydroelectric power grid to be used for cryptocurrency mining back in March.
Crypto Mining In Quebec
Now, the government wishes a share of the pie in the cryptocurrency industry. Much of Quebec’s electricity is supplied by hydroelectricity. They have one of the most advanced hydroelectric power grids in the world, and this has drawn in tons of cryptocurrency miners seeking cheap and sustainable energy.
Thanks to this influx of users with high energy needs the city was having nearly all of its power drained simply to the cryptocurrency industry. The government is now seeking to find a cheap energy solution that will benefit both the electric companies as well as the miners seeking to utilize the expansive and advanced energy source.
Cause Of The Ban
Due to China’s recent ban on cryptocurrency mining and their cheap energy source, many people have been flocking to Quebec, and according to researchers at MIT it is having huge implications for the power grid as a whole. Cryptocurrency miners are eating up roughly a quarter of the total energy supply, and while that might not seem like much, it is a serious and important deal because the grid was not designed with cryptocurrency in mind.
This niche bubble that has popped up over the last year or so has been taking the world as a whole by storm, and Quebec is a prime example where cutting edge power grids will need remodeling if they seek to adapt and compensate for the high energy demands of cryptocurrency mining. This was the key factor in the March ban on the sale of electricity to cryptominers.
Hopes Of A Solution
Many months have come and gone where there was little to no crypto-mining going on; however, the government has been slowly but surely easing into the idea of reinstating the previous conditions that would allow cryptocurrency miners to operate as normal. Quebec still does not have a perfect solution to the energy problems it will likely face, but an imperfect solution is better than an outright ban.
This imperfect solution comes at a cost to the crypto-miners. The Hydro electric company now has the right to charge cryptominers a higher rate and also has the ability to cut these users off at their discretion. It has empowered the electric company much to the dismay of the crypto miners who fear for the stability and readily available energy source. This will ensure that when crypto miners are pushing the power grid to its limits there will not be a city wide blackout in which all users lose power due to the grid being overworked. When times call for it, the Hydro electric company will simply shut off power to crypto miners and insure that regular electricity users will still have their much needed power.
This is very similar to steps that other cities around the world are taking to insure their power grids stability and longevity. New York is imposing higher rates for crypto mining companies to keep up with the growing energy needs of cryptocurrencies in the 21st century. Quebec is seemingly trailing along this similar path