Quebec Being Tough on Bitcoin Mining Groups. With China having stronger restrictions and limits over outside groups getting into the country for bitcoin mining purposes and Iceland becoming increasingly crowded, bitcoin mining groups are flocking to other parts of the world. In particular, people are heading towards the eastern Canadian province of Quebec. This comes as power for cryptocurrency mining has become cheap.
However, cryptocurrency companies are asking for people who want to use bitcoin-mining functions to provide extra funds or other values. This comes as the demands people have for using more power in Quebec have become significant.
Where the Power Is Coming From
Local dams have helped to produce cheap energy in the area, thus making it easier for bitcoin miners to afford operating in the region. Hydro-Quebec, a prominent provider of hydroelectric energy, stated recently that the company has an excess amount of power available. It has been selling that power to people as a means of getting some of those stores off of its back.
Miners getting into Quebec have been asking for a massive amount of energy though. Miners are asking for 9,000 megawatts of power from Hydro-Quebec. This is about a quarter of the overall capacity that company can handle. This in turn is making it so Hydro-Quebec might not be able to handle enough energy while also refusing to possibly offer more energy to people. In addition, Hydro-Quebec is not planning on getting any new dams set up in the near future.
The provincial government is also asking that mining companies avoid trying to get into Quebec to handle their operations. This is due to the excess capacity involved with trying to get all the added power available to people who want to set their efforts up in the area to keep their various operations under control.
Higher Charges May Be Added
The Quebec provincial government has also considered adding new tariffs on hydroelectric power. This would focus mainly on power utilized for bitcoin mining processes.
The additional charges involved would come as the process for mining bitcoins will become even harder to handle over time. As the bitcoin becomes scarce and processes for mining become more complicated, added energy would be required to help produce the new coins, thus potentially creating an even greater amount of effort for mining.
The bitcoin currently has a little more than four million coins of its 21 million available still open. The rate of production on new bitcoins has been slow due to the number of available coins not being as great as it had been in the past with so many efforts coming along.
New York State Offering Help
Quebec’s efforts for managing developments in the state comes as a nearby part of the United States is trying to offer help and support for bitcoin mining activities. The state of New York is currently working on a plan to expand its bitcoin mining support system. Authorities in the state have allowed for some bitcoin mining actions to take place based on how such actions might contribute to the state’s economy.