Bitcoin has become more popular than it has ever been since it touched $20,000 last year and bitcoin mining which is the process that creates bitcoins has become something that companies are finding lucrative.
Provinces like Quebec and British Columbia are becoming a choice for bitcoin miners due to their inexpensive and reliable supply of electricity which is required by supercomputers mining bitcoins. Mining refers to a process of solving complex mathematical puzzles and problems to get rewarded with bitcoins.
Experts have predicted a bitcoin mining boom in Canada due to various factors. Canada is a great choice for bitcoin miners due to its low energy rates and cold weather which keeps the computers mining bitcoins from overheating.
Mining is the mechanism used to introduce bitcoins into the system. Miners are paid transaction fees as well as a subsidy of newly created coins, called block rewards. This method brings in new coins in a decentralized manner as well as motivates people to provide security for the system through mining.
Many foreign bitcoin and blockchain related companies are finding Canada a good place to invest in. and Northern Canada is becoming a hub for bitcoin miners.
Hydro-Québec may even consider raising its rates for cryptocurrency miners as requests continue to pour in from virtual currency companies looking to establish themselves in the province, according to a major news media organisation.
According to an article in a major news website, around 100 cryptocurrency companies have expressed interest in come to Quebec to take advantage of the low energy prices.
Bitcoin mining requires inexpensive electricity since miners across the globe are competing to solve equations to gain bitcoins. The better the computer that solves the puzzles, the higher are the chances of getting bitcoins.
Quebec is an attractive destination because it has the lowest rates in North America for large businesses, as well as cold weather, which helps to prevent the electronics from overheating, a Hydro-Québec executive said in the article.
The article also said that a spokesperson for Natural Resources Minister Pierre Moreau confirmed the matter of raising rates is being discussed but said no final decision has been made.
Cryptocurrency mining takes up a lot of energy. It was reported in an analysis that digital currency miners around the world used more power than the entire country of Ireland last year.
What the bitcoin mining boom could mean for Hydro-Québec is yet to be seen, but it looks like the bitcoin mining boom is here to stay.
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