Canada is recording a big increase in bitcoin mining activities attracting miners around the world. In fact many of the miners who moved out of China after the government cracked down on exchanges that traded in digital currencies have found safe heavens in Canada. As the digital currency industry continues to grow and expand, Canada is strategically positioning itself as a prime destination for crypto mining.
Cheap sources of energy
Cryptocurrency mining activities require ample supply of energy to power the mining computers, which must be kept running all the time. According to Hydro Quebec, the province produces a surplus of 100 Terawatt hours, hence making it the cheapest source of cheap electricity throughout North America.
Access to cheap energy is very important as digital currency miners compete to solve mathematical equations, which feed into blockchain. Miners always work to build more computing power so as to increase their chances of being awarded with Bitcoin (BTC).
Apart from Quebec, several other Canadian provinces are attracting bitcoin miners as a result of cheap and easily accessible energy. These include Manitoba, which has attracted several investors mainly from China. Vancouver has also been hotspot for crypto miners thanks to cheap, readily available green energy.
The government of Canada, both federal and provincial has created a favorable environment on which the digital currency sector can thrive. The Canada Revenue Agency (CRA), the country’s taxman introduced taxes on digital currencies in 2013 but the government started offering Research and Development (R&D) tax incentives in a move aimed at boosting technological and scientific innovation.
Additionally, in a move aimed at uplifting innovative startups, the government has loosened its regulations that govern cryptocurrency/ICO/tokens. In 2017, the Canadian Securities Administrators proposed that Canadian Securities Law may start applying to cryptocurrencies. On the other hand Ontario Securities Commission (OSC) offered regulatory relief so as to allow the first regulated ICO.
Crypto mining activities generate a lot of heat. The mining hardware uses electricity to power the chips and uses them to process bitcoin transactions. A big portion of the power is converted into heat, which needs to be disposed of to avoid slowing down the process or damaging the computers. Cool temperatures are very important in ensuring that the machines get rid of the excess heat.