The Background Details
After reports back in March announcing that Quebec in Canada had thwarted the new Cryptocurrency mining developments that were under process, there has been a little more news this week.
Although Quebec is famous for the cost-effectiveness of hydropower, which the Cryptocurrency mining industry is obviously very attracted to, back in March new clients were being rejected. There were large concerns from utility company Hydro-Quebec over the power load being put onto the hydroelectric dam. As is well documented and we are reminded of constantly, there is an ever-increasing amount of power required for bitcoin mining now. As resources are beginning to run thin, miners are looking for an alternative, green and cheap options to keep their operations running. However, although the eco-friendly alternatives are a great resource, many throughout the world are running at capacity. And at the moment there are just not enough new resources being built quick enough for the high demand. The other issue with Cryptocurrency mines is that although they do need an awful lot of power they do not offer many jobs for the local community. This is not favorable especially when you consider the number of jobs that are opened up with other factories.
However, the main worry back in March was making sure that Hydro-Quebec could consistently provide power to all of its residents the whole year round. This may or may not have been an option if every request for Cryptocurrency mining was accepted. The applications that were sent in would have taken up thousands of megawatts.
What’s Happened Now?
Following on from the above information highlighted three months ago, it is being reported that all Cryptocurrency mining requests are now being rejected immediately. This is to give the government more time to set up everything up ready for Crypto Mining to take off again and put the necessary legislation in place. There is also the opportunity for energy costs to be increased to cover the possible expenses that could roll in with Crypto Mining. New rates are being discussed and reviewed to ensure that the income gained from the energy produced for Crypto mining is as cost-effective as possible. This will hopefully ensure that the residents are not hit too much by the increased load on the hydroelectric dam.
There is also talk of the amount of power that is available for miners being restricted to a certain limit. At the moment, the percentage discussed is only 3% of that actually already requested by the Crypto Miners. This could cause massive repercussions for the Cryptocurrency industry.
Will This Change?
No new applications for Crypto Mining in Quebec will be approved until the government is happy that they can support new mining in the area as well as run power constantly for its residents.
The embargo is likely to be lifted once everything is confirmed behind the scenes although there is no launch date yet. Another one to watch out for!