Low Energy Prices in Western Canada a Major Draw for Cryptocurrency Miners
In business, if you can cut costs drastically enough without sacrificing output, then you're on the right track. If your biggest variable cost also happens to be electricity, then it would stand to reason that focusing on a way to become more energy efficient or operating in an environment with lower energy costs overall is a smart bet. Cryptocurrency mining is driven as much by the pursuit of low energy prices as it is by the need to unearth more Bitcoins or Etherium. Energy is a big enough factor in the hunt for more Bitcoin that companies see the need to relocate their entire server farms to areas with more palatable costs.
Hut 8 Mining Corp. is an example of mining operation having recently set up shop in Drumheller in the western Canadian province of Alberta. The province has some of the lowest costs of energy around increasing any mining operation’s chances of success. As “energy hunters” cryptocurrency entrepreneurs look to crypto hotspots like western Canada, Winnipeg and Montreal. In Europe, miners in Austria have setup shop in the Austria Alps to take advantage of cheap hydropower and underutilized power stations, as has been the strategy for the startup HydroMiner.
The more computing power that’s directed at the mining process, the greater the chances of success. The work entails essentially verifying blockchain transactions which are posted to the public ledger and in the process earning more Bitcoin, the most popular of the cryptocurrencies. Alberta, Canada has some of the lowest energy prices around at approximately 3 cents per kilowatt hour. As the competition for cryptocurrency mining intensifies, so does the outlay of capital for the right “farming” equipment and the need for a location with the right costs. Though Bitcoin lost a quarter of its value in trading in late December, the mining world remains as focused as ever in their quest for the cryptocurrency grand prize.
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