Once the main engine of the global bitcoin industry, China is now using every means possible to push cryptocurrency away from its territory. The Chinese government has recently issued the directive ordering miners to leave the country. Being left with no other choice, Chinese miners are considering the possibilities of relocating their cryptocurrency mining farms abroad, prioritizing Canada over most other options.
The last year’s research undertaken by Cambridge University has shown that China was housing about 60 percent of the world’s cryptomining activity at the time. The country fits the needs of this industry perfectly due to low electricity pricing rate and abundance of cheap land in provincial areas.
However, the current attitudes towards cryptocurrency mining demonstrated by the Chinese authorities are unfriendly to say the least.
“It’s a hard time for the mining business in China,” – Jack Liao, the owner of several bitcoin mines in the country and the CEO of Shenzhen-based Lightningasic cryptocurrency mining company, noted in a recent interview to CNNMoney.
Along with five other Chinese owners of bitcoin farms, questioned by CNNMoney, he thinks of moving his business overseas and considers Canada, USA and Iceland as the most viable options.
Launching of a bitcoin farm presupposes enormous energy consumption.
“You need a country that can provide such a big capacity at a reasonable price,” Liao said.
Canada fits well enough for these purposes, as it has reliable access to cheap energy sources. Even more of that, miners may benefit greatly from the country’s chilly climate, as it could save their powerful computer mining rigs from overheating.
Meanwhile, Hydro Quebec and other Canada’s major electricity suppliers are approached by ever growing number of Chinese cryptocurrency miners willing to use the companies’ services and infrastructure in their trade.