The ban on Exchanges announced last month by China, caused that some investors in the cryptocurrency mining business looked for better places to locate their algorithmic encryption machines.
After their searching process, they found a little town near Quebec, Canada –characterized by its cold weather, and clean, economic energy–, to establish their machinery and took advantage of the low prices of electricity.
“There’s a very clear opportunity to find a lot of energy at good prices, and we have the perfect weather to mine”, said Emiliano Grodski, cofounder of Bitfarms, during a recent tour of the Farnham facility.
The largest variable cost in crypto mining is the electricity, and according to Bloomberg New Energy Finance: “With electricity demand from crypto miners set to exceed that from electric vehicles in coming years, the hunt for new markets is narrowing to Canada and a handful of Nordic countries”.
Due to the great energy consumption by digital mining companies, the utility Hydro-Quebec, said there won’t be cheap power for every mining company looking to establish their operational centers in the region.
Through a statement, Hydro-Quebec even suggested a higher tariff for cryptocurrency miners. The Quebec government also questioned the companies’ contribution to the province economy.
“If you want to come settle here, plug in your servers and do Bitcoin mining, we’re not really interested”, said the Premier from Quebec, Philippe Couillard. “There needs to be added value for our society; just having servers to do transaction mining and acquire new Bitcoins, I don’t see the added value”.
Couillard was more willing to welcome companies that would create “a real eco-system or a real technological transformation centered on Blockchain”, even if the project is financed with cryptocurrencies.
By Omar Cortés