China’s mining industry downturn allows cryptocurrency miner to move to Quebec, Canada

nBuzz comments: Cryptocurrency Mining is an energy-intensive process that consumes too much equipment at high temperatures, and the instability of the cryptocurrency market also requires a stable political climate to minimize risk. Therefore, in the regulation of tuyere encryption currency mining enterprises began to low electricity, low temperature, the political stability of the transfer of Quebec, Canada. Many of them are among the top mining companies in the world, and the demand of these customers already accounts for a large proportion.n
nTranslation: Annie_Xun
Quebec originally wanted to attract technology giants, but it attracted bitcoin miners.n
David Vincent, director of business development for at least electricity company Hydro Quebec, described the province’s campaign in 2016 to attract Facebook, Amazon and Microsoft to wait until local data centers are set up.n
The content is simple: the province offers a large amount of sustainable low-cost electricity, as well as cold weather and a stable political environment.n
Although Hydro Quebec has benefited greatly from traditional data center operations, it soon became apparent that these same attributes are also attractive for crypto-currency mining operations.n
Vincent said Quebec’s attractiveness to commercial-scale bitcoin miners has soared from six months ago, amid rising cryptocurrency and other legal uncertainties in other countries.n
For Hydro Quebec, 35 cryptocurrencies mining agencies are already consulting how to get into the local power grid. Electricity consumption by these companies now accounts for 70% of Hydro Quebec’s total power generation.n
Vincent told reporters:n
n”I am in high demand and do not need marketing at all, and a new company joins almost every day.”n
nThe testimony of other power companies shows that Hydro Quebec sees only the tip of the iceberg.n
Austin Hill, former chief executive of Blockstream, said: “Québec is in a state of flux based on the equipment purchases, real estate and electricity transactions I have seen.” Austin currently invests in quarrying in Québec.n
Cheap abundant power resourcesn
Encrypted currency mining is an energy-intensive process of adding new transactions to the blockchain and typically requires specialized hardware (ASIC or GPU) to solve complex math problems. Mining operations are looking for a cold environment because they require a lot of power and mining equipment generates a lot of heat.n
But the cold climate is not the only attraction in Quebec. After World War II, the government actively constructed dams in the northern area, enough to attract those who have occupied the climatic advantages of mining agencies.n
And because of the government’s move, Quebec became one of the world’s largest hydropower producers. Hydro Electric, with a capacity of 37,000 MW, has long-term savings that allow commercial customers the lowest electricity bills in North America.n
Hydro Quebec charges 2.48 cents / kW · h from the data center and 3.94 cents / kW · h from Bitcoin mining, Vincent said. The latter charge is slightly higher because the mining business generates less employment and is more economically stimulative than the low. Hydro Quebec figures show that these rates are generally five times 50% lower than in the same level in North America.n
Vincent said the consistent long-term pricing and the assurance that short-term rates will not soar are the key value propositions for cryptocurrency operators.n
“We usually managed to keep inflation low and have not changed since 1963.”n
Although some believe mined money mining will reduce environmental quality, it has become a trend for these mining companies to seek competitiveness through greater energy efficiency and resource optimization.n
Hill, of Brudder Ventures in Montreal, said, “In some hotter regions, the life of existing ASIC equipment is typically reduced to six to nine months because of the cost of cooling to go above equipment costs.”n
n”A simpler way to do this is to run at high temperatures and buy new ones, which is a huge waste.” It’s helpful to move to a low-temperature area like Quebec.n
Political stabilityn
Another driving force behind Quebec’s accidental bidding as a cryptocurrency mining center is that miners need a stable political environment and can be more confident in laying out capital and business plans four or five years ahead of schedule.n
Although some of the organizations interested in Hydro Quebec are from North America, a large number of mining companies come from other countries, notably China. Because here the encryption currency mining to encrypt the currency of the overall situation is not very good.n
Vincent said last fall’s move by the Chinese government made Quebec heat up.n
n”They did not say the same, but the fact is that the increase in demand is basically in line with the time when there was a problem with the judiciary in the past. We can think of it as being relevant.”n
nThese problems, as well as the ongoing news of banning mining and kidnapping of officials in Venezuela and other countries, have given mining institutions more emphasis on operating in areas with minimal risk.n
Very good questionn
Although Hydro Quebec is still trying to fully seize such customers, but he is willing to warmly welcome them, because of the huge demand, not to mention that they are 24/7 operation.n
To show the scale of mining operations, Vincent compares it to other Hydro Quebec customers.n
n”The smallest business customer Montreal canadiens field hockey requires 5MG of electricity, a typical data center needs 30 ~ 60MG. In contrast,” the world’s top three or five mining institutions are almost always in contact with us, they The current demand is about 200 ~ 300MG. This is very huge. “n
nBut for industries like the cryptocurrency, where there is so much volatility, nothing is immutable. To hedge it, Hydro Quebec will require miners to bear the upfront costs of connecting to the grid and, third-largest enough to provide credit, to offset any potential losses.n
n”Our question is: Is this going to last for at least the current strength?”n
nBut the biggest problem with Hydro Quebec is that as soon as they enter, they find the suitable buildings and areas to set up mines as quickly as possible and recruit staff to meet all the requirements of such potential customers. “n
n”Miners feel they are losing money every day, so they demand a large building with a large network, and it will be tomorrow.”n
“We have power capacity, but we are not accustomed to such a huge demand, which is a good question.”n

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