Quebec Might fill in for China mining ban – Low Tariff for Cryptocurrency MiningMay 6, 2019
Robert Sluymer, Fundstrat analyst recently stated, “While it’s premature to conclude Bitcoin will not retest support near $4,300, we would encourage traders and investors to remain focused on the bullish longer-term technical profile developing. Bottom line: use recent weakness to accumulate.”
The current cryptocurrency market is all green with the price of most of the cryptocurrencies with even TCAT tokens doing well. Bitcoin cash and Litecoin have reported the largest gains at 7.91% and 7.29%.
Hydro-Québec, the energy regulator in Canada’s Quebec’s province has allocated 300-megawatt of electricity for mining cryptocurrency. This is an increase from the already allotted 368 megawatts to 668 megawatts without having to touch upon the underlying costs.
The LRQ stated that they have excess electricity to spare for the operations of the mining industry, therefore, providing for lower tariffs.
In a press statement, the LRQ stated, “The creation of a reserved block and the requirement to curtail electricity use during peak hours at Hydro-Québec’s request (up to a maximum of 300 hours a year) will allow us to provide power to these new customers without any negative impacts on our capacity balance.”
When it comes to metrics involved in mining cryptocurrency, deciding on the miner’s profit/loss ratio, it will be possible for miners to validate blocks for lower transaction cost and thus they will be able to earn rewards that provide for higher cryptocurrency values.
The LRQ is looking to establish Canada as one of the major destinations for the cryptocurrency miners. Currently, more than 80% of the global crypto mining operations are being done in China. With China planning to shut down their mining operations, it is likely for their clients to move on to friendlier crypto administrative areas.
China’s potential Bitcoin ban is an opportunity for Quebec to catch up on the opportunity it already missed in becoming the best Bitcoin exporter in the world.
Francis Pouliot stated, “If Quebec had kept electricity rates low for Bitcoin miners five years ago with clear regulations/guarantees (it’s the now) we’d currently be top 3 Bitcoin producers and perhaps top exporter of Bitcoin worldwide. With gas, hydro and cold, Canada is poised to become the Bitcoin El-Dorado.
This is a situation that miners were looking for. The lower tariffs will support cryptocurrency miners to continue with their mining operations. With the market having already recovered by 6.77, the China ban is not something that miners want to witness. If in case it happens, they need another operator who will compensate the facilities for them. Quebec might fill in for China mining ban.