Update
With 5,000 megawatts of excess power burning a hole in the Quebec authority's proverbial pocket, reaching out to the crypto mining space seemed like a perfect solution. The access to cheap electricity and cold weather, to cool the mining equipment, may have been a bigger carrot than Quebec expected. A hundred miners seeking 10,000MW seems to have over whelmed the Q authority while a dry winter that stretched peak demand has given them second thoughts. There has also been a renewed discussion of the proper use of resources questioning the social, economical and environmental issues around crypto mining. This discussion has lead to a three month moratorium in one area while others consider raising rates on the miners. Perhaps this is another sign that the crypto space will have to alter their model away from a energy hungry approach such as proof of work. This may also further the conversation towards proof of stake (POS) over the more energy dependent POW when it comes to consensus or put another way confirming a transaction. As the Quebec authority decides its next move, crypto miners are finding "not welcome" signs in more countries and perhaps are left muttering qu'est-ce que c'est!
Previous
China and the PBOC are apparently trying to crack down on bitcoin mining due in part to the large volume of energy being consumed. There are sources that have maintained that 80% of all mined bitcoin are coming from China. Whether that number is true, inflated, is bitcoin or many different tokens seemingly is all up for conjecture. What we do know is that China's cheap electricity comes from their abundance of coal, est. 73% of production, and that China has struggled with horrific air pollution.
This week coincidentally Hydro-Quebec rolled out a 5000 Megawatt red carpet to crypto miners. Apparently the state owned utility is suffering financially and tax payers could be on the hook for surcharges unless the utility can find another outlet to distribute its hydroelectric power. CEO Eric Martel has reached out to energy consumers like website servers hoping to attract them with their cheap, clean excess electricity. In the meantime China may just have thrown Mr. Martel and tax payers a life line while the miners get the opportunity to turn water into gold.