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Canadian province Alberta offers power solution to the Bitcoin Mining

Jan 30, 2018 Posted /  1886 Views

Canadian province Alberta offers power solution to the Bitcoin Mining

The entrepreneur Sean Clark started his Bitcoin mining company in the small town of Drumheller in the northern Alberta, Canada, as the region offered cheap electricity rates providing largest margins for his business. The Hut 8 Mining Corp CEO thought that he can also profit from the latest obsession: Bitcoin.

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The town which is called as "dinosaur capital of the world" as it majorly conjures up dinosaur bones and ancient fossils want now to be renowned as the cryptocurrency mining capital of the world. The cryptocurrency boom is accelerating Canadian companies to enter the global charge to discover the cheapest sources of energy as computing competition drives for escalating demand. Hence you will now witness crypto hotspots growing in small towns like Drumheller, Winnipeg and Montreal.

“Because electricity is our highest cost, we become energy hunters,” states Clark. “We find the cheapest sources of energy, put a container down, plug it in and start mining.”

Access to cheap energy is pertinent as the Bitcoin miners around the world are neck to neck to solve the equations that validate the blockchain transaction. Electricity plays a vital role in the mining as more the computing power higher are the possibilities of being rewarded with Bitcoin, mentions Clark.

Alberta is a house for the abundant cheap natural gas and lower demand growth, as power prices are considered the cheapest. As Clark explains that his company is getting electricity at about three cents per kilowatt-hour.

The company had planned to cope up with an increase in prices as Stark elaborates that the company would solely put the 12-metre containers that hold its data centres on 18-wheelers and roll them to the next-cheapest energy spot. The competition in Bitcoin mining has expanded vastly as many cryptocurrencies have seen huge price gains in the past year. We all witnessed how Bitcoin was trading as high as US$19,000 in December. This means that simple laptops cannot fulfil the demand for bitcoins as it was possible in the early days.

It is noteworthy that a regular laptop makes a mere 40 calculations in a second, however, the 1.1-megawatt rigs by Hut 8's partner Bitfury handle 7.5 quadrillion calculations per second. It is projected that the company would have 60 megawatts of installed capacity at the end of the year.

Oil and gas explorer Iron Bridge Resources Inc., lately announced their plans to launch a cryptocurrency mining division that will use excess energy from its oil and gas operations in northern Alberta.

Chief executive Rob Colcleugh said the company is premeditating a roughly 600-kilowatt crypto-mining operation to utilize high Bitcoin prices and extremely low natural gas prices.

“The economics at these levels are pretty astounding,” he said.

Colcleugh said he searching for a partnership that could offer power costs “orders of magnitude” less than provincial utility rates.

In the meantime, Toronto-based Blockchain Power Trust, which this year changed its name from Transeastern Power Trust, plans to use the renewable power it has been developing largely in Romania to power new cryptocurrency mining operations in the eastern European country. Global Bitcoin miners have also taken note of Canada’s abundant cheap electricity, as China looks to crack down on mining operations in the country.

With more companies looking to get in on Bitcoin mining though, the power demands are expected to keep climbing.Morgan Stanley predicts in the latest note that just this year Bitcoin power demand would hit 120 to 140 terawatt hours — or about the consumption of Argentina — in an industry that didn’t exist a decade ago.

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Tags: digital currency Bitcoin Mining cryptocurrency

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