Cryptocurrency mining projects use powerful computers that consume a lot of energy to get a share of this modern ‘Gold Rush’. Hydro-Quebec electricity supplier planned to spike the electricity rates for cryptocurrencies mining projects which rushed up to activate in Quebec. Why is Quebec the best place for crypto mining (such as Bitcoin (BTC) mining)?
Back in 2008, an unknown individual called Satoshi Nakamoto programmed the first cryptocurrency of the world – Bitcoin (BTC).
Nowadays, there are thousands of crypto coins, and Bitcoin (BTC) is still leading the pack from the pole-position, in both market capitalization and price.
Cryptocurrencies are, actually, virtual currencies designed to allow the exchange of values from one computer to another without a third party such as a bank playing the role of referee guaranteeing the integrity of the transaction.
The computers confirm “blocks” of transactions by establishing a “consensus” by an energy-consuming mathematical process, for which participating computers are rewarded for their work. Put together, these “blocks” form the blockchain, which is a large public book of transactions.
Why is Quebec the best place for crypto mining?
Individuals who participate in cryptocurrencies mining, commonly known as miners, do this by serializing multiple powerful computer graphics cards. These devices, specialized in cryptographic calculations, are capable of performing millions of calculations per second.
This power, however, has a cost, since each attempt to solve the puzzle nibbles a few joules of electricity and produces heat. With its cold climate and cheap hydroelectricity, Quebec is, therefore, the best place for crypto mining.
Why is the cryptocurrencies mining the modern ‘Gold Rush’?
With the growing Bitcoin (BTC) popularity and value, tens of thousands of computers around the world are helping to build the consensus.
To do this, they compile, once every 10 minutes, all the latest transactions made by cryptocurrency owners and apply a mathematical calculation (a cryptographic function) that requires billions of random attempts before being resolved by a computer.
The first computer to find the answer to the puzzle gets a reward of 12.5 Bitcoins (BTC), which is currently the equivalent of nearly $110,000 at the actual trading price of the BTC.
In conclusion, it is quite understandable why cryptocurrencies mining is the new ‘Gold Rush’ and, with its cooler climate and cheap electricity, why is Quebec the best place for crypto mining.