Looking for the Next Big Bitcoin Mining Hub? Try Canada
Canada is a well-respected nation on the world stage, long associated with hockey, maple syrup, and now ... bitcoin mining?
That's shaping up to be the case, as Canada and localities within the country are actively enticing bitcoin miners to come and set up shop.
In being a popular and welcoming place in more ways than one, then, Canada has positioned itself to become one of the major, if not the most major, mining centers in the world. And that could make a lot of difference as recent reports out of China suggest the reigning mining powerhouse could soon be shuttering mining operations within its borders.
So let's take a closer look at why "The Great Bitcoin Mining Migration of 2018" may be in store for Canada.
Active lobbying efforts
Canada isn't sitting back and hoping that miners come: it's actively promoting the idea of them making the move.
For instance, the state government of Quebec -- a great location for mining due to the region's affordable, excess electricity -- has been lobbying dozens of large-scale cryptocurrency mining operations to make the leap over to North America.
Some have already said yes, too: the mining firm BTC.Top has already decided to go all-in on Canada, for one. And the hydropower utility company Hydro Quebec is helping the state government by actively coordinating with miners on how to make the most affordable transitions possible.
"We’ve seen a lot of movement towards Canada," CEO of the Apex Token Fund crypto hedge fund Chris Keshian noted in recent press comments. "The Canadian government is relatively friendly towards cryptocurrencies [and] energy is relatively cheap."
With all this being said, it's clear that such government-level courtship is an outlier in the cryptoverse right now. Canada is fighting to win miners over right now, which is lightyears more than what most other countries are doing (or even considering).
Bitmain mulls the move
In the arena of bitcoin mining, Bitmain Technologies is an undisputed titan. Which is why it's huge news that Reuters is now reporting Bitmain could soon be moving their operations to Canada.
Indeed, on January 12th, Reuters reported that Bitmain spokesperson Nishant Sharma confirmed the mining powerhouse was also in talks with authorities in Quebec to see about finding new viable sites for the companies operations.
And if the deal works out, then Canada will be sitting pretty, as the massive influence of Bitmain will surely influence more mining companies to follow suit in short order.
It's all about de-risking
With the rumored mining crackdown that's been causing anxieties in China in recent weeks, it's seemingly an existential business risk to stay in the nation with no exit plan.
That's because when the Chinese Communist Party finally comes down, they'll likely come down hard and fast.
Accordingly, it's going to be worthwhile for miners to get out of China early and orderly. And that's what Canada is offering right now: a safe haven.
Look for Canada to keep up its lobbying campaign, then, as they want all the benefits that a "Bitcoin Boom" could bring to local economies. They're surely only getting started.
Featured Image via Fotolia
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.