Currently more than 60 percent of all bitcoin is mined in Sichuan mountains (China), which until recently represented a perfect choice for miners due to low temperatures and cheap electricity.
However, after the country decided to curb the energy consumption associated with bitcoin mining, seeking other locations became the preoccupation of miners.
What is cryptocurrency mining actually?
Cryptocurrency mining represents a process by which digital currency transactions are recorded, verified and stored in a public ledger called the blockchain.
This process is carried out by miners, who use powerful computers to navigate cryptographic problems to select transaction blocks. The transaction fees associated with using cryptocurrencies are awarded to the miners. However, this process requires a significant amount of energy and temperatures kept to minimum.
Support from Canadian government
As China’s stance against cryptocurrency has become even more stringent, with the most recent circular ordening for banks to stop funding cryptos, more and more Chinese miners need a new place to call home.
“Canada is about to become a central source. I think there’s definitely a rush happening now. I think we’re going to have a significant amount of mining in the next few months,” said Cole Diamond, CEO of Coinsquare, one of Canada’s leading cryptocurrency exchanges.
“What’s happening is, with the increasing profitability more and more people start to mine and fight over the reward, and that’s when you ramp up mining facilities to make money. And that’s why the facilities grow, and the energy consumption grows,” said Marco Marcovici, cryptocurrency expert and advisor to the hydro-powered crypto-mining company, HydroMiner.
North America is one of the best places in the world for mining, due to low cost electricity, cool temperatures and high-speed internet. For example, Hydro Quebec offers a unique opportunity for miners and data centre operators, with electricity costs at $ 0.0248 per kWh for data centres and $0.0394 per kWh for miners.
Other promising countries
Other countries which can replace China regarding cryptocurrency mining are Iceland and Russia. Both countries have cool temperatures and abundance of cheap electricity.
For example, Iceland offers miners the opportunity to significantly reduce the environmental impact of their mining, with 100% renewable options.
On the other hand, Russia plans to build a large-scale cryptocurrency mining operation, expected to cost $100 million. The mining equipment will be placed in the homes of private citizens in order to exploit Russia’s 20 GW power capacity surplus.