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Canadian Cryptocurrency Mining Boom in Full Swing

JP Buntinx | February 28, 2018 | 2:30 pm
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Bitcoin

Canadian Cryptocurrency Mining Boom in Full Swing

JP Buntinx | February 28, 2018 | 2:30 pm

Cryptocurrency mining is a very difficult yet potentially profitable business model. Without meeting certain conditions, it is almost possible to break even, let alone make a profit. It seems Canada is slowly becoming a major hub for cryptocurrency mining operations as of right now. The cold climate and cheap electricity make it a very attractive venue.

Canada Matters to Cryptocurrency Miners

Two of the main conditions to run a profitable Bitcoin mining business is cheap electricity and a preferably cold climate. Canada is certainly known for the latter, but it also provides the former. Unlike most other countries, Canada has a relative abundance of cheap electricity as of right now. As this energy is not used, it makes sense for Bitcoin mining operators to explore new opportunities in this country.

Several regions across the country are of great interest right now. Quebec, Manitoba, and British Columbia have all seen an increase in attention from Bitcoin mining firms. Setting up shop in Canada is not all that easy, though. While nothing prevents companies from doing so, inroads have to be made with the local community as well.

Even though Bitcoin remains incredibly volatile, its appeal has not diminished. Several firms think they can operate a profitable mining business under the right conditions. DMG Blockchain Solutions is currently in the process of setting up a new mine altogether. It seems they are confident they will make a healthy profit in the coming months and years. If the current Bitcoin price is any indicator, that may prove to be rather difficult.

Creating New Jobs at the Cost of Electricity

To a lot of people, Bitcoin mining seems like a monumental waste of electricity. The carbon footprint of these ventures should not be underestimated. At the same time, it is this “waste” can help create new jobs. Most professional mining operations employ a dozen people or more. In this regard, Bitcoin mining creates jobs by using an abundant resource in the process.

Electricity in Canada is relatively cheap, but not everywhere. Winnipeg, Montreal, and Calgary are all pretty cheap. Moving to Vancouver and Edmonton is a bit more expensive, but still acceptable. Toronto is even more expensive than New York, yet some firms prefer to set up shop in this part of Canada. It will be interesting to see how the rising electricity consumption affects all of these regions in the country. As long as the power grid can handle the throughput, there is nothing to worry about just yet.

In a way, mining Bitcoin in Canada is a logical evolution. Some companies even experiment with this option to use their company’s byproducts accordingly. Any gas or oil produced as a byproduct can effectively be used to fuel Bitcoin mining operations. It is evident all of these ventures will attract even more international attention moving forward. Canada is quickly becoming a powerhouse for Bitcoin mining, which can only be considered to be a good thing for the nation and the industry. 

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