Canada: The New Coin Mining Capital of the World
By: Fab Info
Tags: Tech, Bitcoin, Blockchain, Articles, Bitcoin Mining

Is Canada the Next Mining Haven?

Whether bitcoin mining is profitable or not is debatable. Miners can potentially make more profit by discovering the right altcoins to mine if they are willing to put in the effort to do research on hardware specifications, the specific altcoin’s technology, setup procedures, etc. Home-use PCs may still be powerful enough to mine the emerging altcoins when one does not have to compete with dedicated ASICs.

When the scale of mining increases, it will start to make sense to investigate where is the ideal location for a business to establish the mining site. While today Chinese pools control ~81% of the network hash rate according to one online statistic by BuyBitcoinWorldwide, Chinese miners are looking for alternative countries to relocate their large mining operations amid news of crackdowns on cryptocurrencies by the Chinese government.

Advantages of Mining in Canada vs. The Rest of the World

Relatively Cheap Electricity and Abundance of Energy

Canada’s electricity costs remain very competitive across the globe, although the cost varies between provinces. For example, the province of Quebec offers some of the lowest electricity rates in North America. The province has an energy surplus equivalent to 100 terawatt hours over 10 years from. A single terawatt hour powers 60,000 homes in Quebec for one year.

Other cheap energy provinces include Manitoba and Alberta. The surplus makes energy rich Canada an attractive location for miners to take advantage of the power needed for operation.

2. Cold Weather and Availability of Land

Mining is a process of solving complicated mathematical problems via a proof of work. Like any laptop, mining computers generate heat when the processor is put to work. Often, additional energy will have to be consumed to cool the equipment. Cold weather in most of Canada throughout the majority of the year provides Canadian based mines with a competitive advantage. This explains why Iceland is also a very popular country for miners.

With advanced technology the heat generated through mining machines may even be recycled for use in other areas through CHP (combined heat and power). It is not currently very popular because mining sites need to be in secure(usually secret) locations, and therefore need to be far from areas with large populations, but is a possibility in the future for many.

The fact that Canada is sparsely populated in the majority of the land mass makes it attractive due to the availability of remote areas suitable for a mining operation.

3) Open and Stable Regulatory Environment

For businesses that require a lot of initial capital to start, it is better to look for a stable regulatory environment where the owners can avoid bearing additional costs and risks associated with policy changes. For mining sites, local electricity infrastructure must be able to handle the required load before connecting and also show a reasonable cost-benefit for the local government and hydro companies. The procedure can require a large capital outlay on applications, assembly of mining rigs, utility connection charges, permitting charges, equipment, in-building electrical network, etc.

Businesses must make sure that they can stay in the same location for at least a few years to recoup their initial costs, which is a stronger possibility in Canada. In case of any adverse incidents, Canada’s strong legal system can help to protect the interests and rights of businesses.

Thanks to the above advantages, Canada is attracting increasing number of mining businesses and becoming a new home for miners.