Quebec Considers Raising Rates for Bitcoin Miners After High Demand

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by Julia Sakovich · 4 min read
Quebec Considers Raising Rates for Bitcoin Miners After High Demand
Photo: Remi / Flickr

While some countries are trying their best to attract Bitcoin mining companies, others don’t know how to deal with the demand.

As it became known Canadian electric utility Hydro-Quebec may raise energy rates for crypto businesses. This move is explained by an enormous number of requests received from miners wishing to establish their business in the province and take advantage of its rock-bottom energy prices.

According to the company’s spokesman Marc-Antoine Pouliot, more than 100 cryptocurrency companies had expressed interest in coming to Quebec and a couple of them had already settled in the province. Some of the proposed project will need 100 megawatts which means that they consume more than 20 times more energy than it is required to power Montreal’s sports and entertainment complex, the Bell Centre.

Getting cheap energy is very important for cryptocurrency miners who all over the globe are trying to solve math equations with the help of their computers in order to get their rewards in coins. The more computing power is put into the system, the higher are the chances for miners to be rewarded.

Without any doubts Quebec is an attractive destination for miners due to  several factors. The first factor is the lowest rates in North America for large businesses. The second one – quite a cold weather, which helps to exclude additional expenses for cooling systems and to prevent machines from overheating.

Initially, Hydro-Quebec which currently has an energy surplus decided to attract large tech companies to the province with its low rates, but mining companies were more eager to come.

So, the skyrocketing demand has led to the point when the company began considering an industry-specific rate change with a view to protect its surplus.The company has already introduced industry-specific rates before, but generally to give a discount, not a hike.

As the representatives of the Natural Resources Ministry have informed the matter of raising rates is being discussed. Nevertheless, there isn’t a final decision yet.

Earlier this week, a tax on bitcoin mining companies has been proposed in Iceland, where the miners can also get benefits from quite affordable prices for energy and a cold climate like in Quebec.

So, as we can see due to low prices for resources (in the case with mining it’s electricity) some countries are much more attractive for miners than others. Moreover, difference between electricity prices around the world means that mining one Bitcoin in a certain country can more profitable than doing it in another corner of the world.

Judging on the results of the research, the most profitable location for mining a single Bitcoin is Venezuela. The process there costs only about $530. According to Coinmarketcap, Bitcoin is traded for $10,024.60 which means that South American miners have all chances to hit the jackpot. Moreover, we should also consider economic and political situation in Venezuela in order not to be surprised that many people there decided to go in for mining.

Nevertheless, there are some countries where Bitcoin mining is not very feasible. Such West European countries as Germany and Denmark are ranked as some of the most expensive locations for miners. In the current climate for getting a Bitcoin there you will spend approximately $4,000.

 China that is considered to be a mining super power can boast only $3,172 per coin which currently means a 70 percent return. Though earlier the country’s government used to be more mining-friendly now it looks at it with suspicion.

Another super power – Russia, which is now benefiting from subsidies from the government and relatively cheap electricity, sits at $4,675 per Bitcoin and could soon find itself under stricter control and regulations.

Though electricity is one of the first expenses that should be considered by miners, regulation is another vital aspect to be examined.

For instance, there are some countries where the electricity is rather expensive, but conditions for Bitcoin mining are quite acceptable and regulations around it and cryptocurrencies are a lot lighter than anywhere else. A good example of such places is Japan.


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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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