Despite the efficient evolution of the Bitcoin mining industry, governments around the world remain hostile to the Bitcoin mining industry. New York made quite a stir by imposing a two-year moratorium proof of work [PoW] crypto mining. Now a Canadian province did something similar, but for a different reason.
According to a recent report, the Canadian province of Manitoba has imposed an 18-month moratorium on new crypto mining. This was done in light of the possibility of new crypto projects overwhelming the local grid. Speaking of the same thing, Treasury Secretary Cameron Friesen said:
“We can’t simply say, ‘Well, anyone can take anything [energy] they want to take and we’ll just build dams’. The last one cost $13 billion if you take the [transmission] line.“
It should be noted that Friesen is also responsible for Manitoba Hydro, a state-owned company.
At present, there are reportedly a total of 37 active mining operations in the Canadian province. The latest moratorium has no consequences for these companies.
This is why Manitoba is a hotbed for crypto mining
After offering significantly low electricity rates, Manitoba lured in a string of Bitcoin mining companies. Especially without big profits from mining as a result of The falling prices of BTCmining has become quite expensive.
As can be seen in the chart above, mining profitability is lowest throughout the year. While some miners were looking for a way out, a few others were hunting regions with lower electricity costs. Therefore, a plethora of companies headed for the province with the second-lowest electricity rates. Quebec takes the top spot for having the lowest electricity rates in the region.
It was even brought to light that 17 new mine operators had applied to operate in the province. These miners were looking for a total of 370 megawatts of electricity.