In terms of digital currency, Canada is still a distinctive and tightly regulated choice for the neighboring country of the United States. Although Canada's approval process is more stringent than some countries, it is the first country to allow immediate data encryption for exchange-traded funds. The national pension fund has already invested in digital currency, and login password mining companies have moved to this country to take advantage of cool temperatures and affordable energy demand.

But the gold rush among Canadian miners is likely to have slowed down. In early December, Manitoba, which is rich in hydroelectric power stations, introduced a bill to suspend new mining projects for 18 months.

The move is similar to a recent measure in the US state of New York, which suspends the renewal of current mining permits and requires all new work to confirm the use of 100 per cent renewable resources in mining.

This trend cannot be dismissed as an isolated event. Both events took place in relatively cool areas where there are large amounts of electricity from hydroelectric power stations, so tightening the screws in Manitoba does not seem ideal for areas where electricity is less sustainable.

Is it time to change the location of Canada as a harbor for mining the soul?

Congenital susceptibility gene

In October 2021, the price of BTC (BTC) increased by US $60, 000. By that time, Canada had become the fourth largest BTC mining destination in the world, accounting for 9.55 per cent of the total BTC extracted in the country (up from 1.87 per cent a year ago). China has effectively filled the gap left by our severe crackdown-our mining-themed activities will almost be solved by 2021-although foreign countries have benefited greatly from this crackdown, the BTC hash rate has risen from the sixth to the first.

After the collapse of our country, the Canadian government did not have to do anything particularly diligent to attract the enthusiasm of miners all over the world. The country has two obvious advantages that can be distributed to everyone: a cool climate and rich hydropower projects. In a study in 2021, the DEKIS Research Group of Avila University ranked Canada's sustainable mining development potential 17th in the world, higher than that of foreign countries (25th), China (40th), Russia (43rd) or Belarus (66th).

The high score is mainly due to the combination of low electricity bill (US $per kwh0.113), low average temperature (− 5.35 ℃) and high human resource index (0.8%).

Mining restrictions will continue for 18 months

Regardless of the country's influence on data encryption miners, Manitoba, which has Canada's second-lowest energy demand, decided in November to suspend a new mining operation for 18 months. This decision is reasonable because the new operation may seriously endanger the local power grid. As Manitoba Finance Minister Cameron Frieson told the CBC:

"We shouldn't simply say, 'well, everyone can take away all the electricity they want, and I just build dams'." If the price of coaxial cable is included, the price of the final one is $13 billion.

Friesen revealed that the recent requirements of 17 potential operators will require power engineering from 371MW, which is more than half of the capacity of Keeyask power plants. According to him, if other less formal inquiry purchases are included, the total supply of new miners will exceed 4600MW. There are now 37 mining equipment in Manitoba and their operations are not affected by the restrictions.

A further worry is the lack of relativity of jobs offered by digital currency miners. Digital money miners "can take advantage of more than a hundred MW power projects and have a very small number of employees," Friesen said.

New situation?

Edinky Herbert, president and chief strategy officer of Honeycomb chain Technologies, a Canadian access code mining company, does not think the Manitoba case is a stand-alone incident. In early November, Quebec Hydro, which manages electricity in the Canadian province of Quebec, exempted the company from the responsibility of supplying power to data encryption mining. However, Kilic told Cointelegraph that such a thing does not amount to a new normalization:

"the purpose of this suspension is to give the utility company time to evaluate the actual operation of the existing login password discovery. The new situation in Canada will involve landing password miners working with utility companies to balance the grid or to recycle electricity energy in a carefully considered way, the key is sustainability.

Since Honeycomb Block chain Technology has used the heat of its 40, 000-square-meter processing plant in Quebec to heat a 200000-square-meter natatorium production plant, Gilbert sees the recent trend as an opportunity for local power engineering dealers to understand contact with mining network operators.

Canadian utility companies have received many inquiries from foreign companies, which are looking forward to taking advantage of Canada's cool climate and abundant hydropower resources. On the contrary, he stressed, it goes beyond the needs of China's digital currency miners, and the latter is committed to long-term partnership:

"I hope that public utility companies can make clear from the induction process which customers have sufficient funds, or even become long-term customers, and have a past record in promoting the concept of sustainable development."

Kilic says building a data center requires a lot of project investment. In this sense, a sound verification process that requires miners to meet some asset standards will greatly reduce the total number of genuine applications. He believes that the power grid will also be committed to balance and sustainability.

McGinnis Webb, founder and CEO of data Power Engineering improvement at the access password Discovery Service Center, told Cointelegraph that Manitoba's restrictions will not affect Canada's impact as a mining destination due to more fundamental factors, such as legal and technologically effective mining, many of the overcapacity power projects that will be consumed:

"Energy groups are using BTC mining as a tool to help upgrade their power generation assets, and it will be an enhanced industry for mining, so we feel that more and more of this work will be done in areas where the energy crisis is really solved."

Weber shows that because of simple prices, Bitcoin miners will not use power projects that are in short supply. They may even increase the flexibility and resilience of the grid by providing profitable loads that can be easily turned off when the grid's energy supply increases. Kilic validates this view, claiming that its companies can shut down the power grid in a matter of seconds.

Only time can confirm whether Manitoba's due process and regulators will allow this logical reasoning; however, those involved remain optimistic. Weber predicts that there will be more mining-themed activities in Manitoba and New York City over the next decade, and in the words of Gilbert, Canada has a better location for digital monetary infrastructure in the world. Infrastructure opportunities such as infrastructure should not be missed.