Despite the efficient evolution of the Bitcoin mining industry, governments across the globe continue to express hostility towards it. New York made quite some noise by imposing a two-year moratorium on proof-of-work [PoW] crypto mining. Now, a Canadian province was doing something similar, however, for a different reason.
According to a recent report, Canada’s Manitoba province put forth an 18-month moratorium on new crypto mining. This was done in light of the possibility of new crypto projects overpowering the local grid. Speaking about the same, Finance Minister Cameron Friesen said,
“We can’t simply say, ‘Well anyone can take whatever [energy] they want to take and we’ll simply build dams’.The last one cost $13 billion if you priced in the [transmission] line.“
It should be noted that Friesen is also responsible for Manitoba Hydro, a state-owned firm.
At present, there are reportedly a total of 37 active mining operations in the Canadian province. The latest moratorium will not affect these firms.
Here’s why Manitoba is a hotbed for crypto mining
After offering significantly low electricity rates, Manitoba has been luring in an array of Bitcoin mining firms. Particularly, with no major profits from the mining industry due to BTC’s depleting prices, mining has become fairly expensive.
As seen in the above chart, mining profitability is at its lowest throughout the year. While some miners were looking for a way out, a few others were hunting for regions with lower electricity costs. Therefore, a plethora of firms was heading to the province that offers the second-lowest electricity rates. Quebec takes the top spot for entailing the lowest electricity rates in the region.
It was even brought to light that 17 new mining operators had put forth requests to function in the province. These miners were seeking a total of 370 megawatts of electricity.