Always regarded a younger United States brother, Canada has conventionally been endowed due to its many natural resources. Further, the proposition is made lucrative due to its medium population, which means the natural resources are available to everybody at lower costs. This is due to the great number of natural resources in addition to less demand facilitated by fewer people.
Gradually, Canada is becoming a new habitat to a new era of digital resources, the cryptocurrency and blockchain. The lower cost of energy in Canada is among the key reasons cryptocurrency miners are rushing to lay out their base in the country.
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A digital technology caveat is that they cannot operate without electricity. It is the same case with cryptocurrencies and blockchains, because they are very power intensive, particularly when tokens are produced through mining.
Mining entails the utilization of computer hardware to handle complex hashes. After solving the hashes, you get tokens that form cryptocurrencies. To solve those hashes, the computers need to work non-stop. Hence it’s a process that requires a lot of energy.
Increasing energy prices and environmental issues are factors that ought to be addressed when dealing with cryptocurrencies whereby many believe the processes pose a critical climate threat.
The cheap power in Canada is generated from various sources, with some provinces entirely depending on renewable energy, while others utilize conventional sources of energy. In Canada, energy is produced in surplus, which means, electricity costs are low.
Previously, in 2017, the large destination for mining digital currencies has been China, due to minimal electricity expenses. However, the crackdown of digital currencies by the government last year has forced thousands of miners to bring their activities to a halt as they avoid prosecution and rather seek for better places where they can continue with their mining activities.
Canada has a pro-immigration stance and liberal government and when the factor is combined with cheaper electricity, is the reason groups and companies alike are hurrying up to its shores. The United States is likewise a major positive in its favor because it has good connectivity to the superpower.
For instance, Quebec is a province in Canada which has tapped its natural resources to generate green energy at one of the smallest tariffs in the globe, hence the reason many firms have been shifting their base to Quebec. The amount of carbon generated is also sustainable for the environment.
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The weather helps with cooling 😎
@mcoinz79 Then it's a great country to set up a mining plant.
I kind of doubt this. If you're at the point where you are going to invest tons of money into a mining project you're not going to Canada. Canada (where I'm from) is not this "exotic land" of French Canadians, maple syrup, poutine and cheap hydro electricity. Yes it may be cheaper than the U.S., but not that much. If you are investing money to set up an operation you'll invest that money elsewhere.
@trevord Thanks for highlighting the other side of the coin.