Bitcoin Miners Migrate From China To Canada As PBOC Begins Crackdown

Bitcoin rangin the year Peter Thiel-inspired ramp following reports that the People’s Bank of China is preparing to crack down on bitcoin miners.

In fact, Reuters reported that the PBOC had held a meeting about regulating bitcoin mining power use, an increasingly sensitive topic now that global bitcoin energy consumption is greater than what Qatar uses in a year.

btc

Unfortunately for bitcoiners across the world, the PBOC has called for establishing limits on the energy used by miners, sending the bitcoin price lower. Before news of the crackdown broke, we reported late last month that Winnipeg City, Manitoba, could become a hub for crypto miners because of its exceedingly low power costs. Indeed, Winnipeg City has been rated the city with the lowest power costs in North America cryptocurrencies broadens to bitcoin miners, some of the industry’s biggest players are shifting operations overseas.

While the moves are unlikely to have a noticeable effect on bitcoin transaction speeds, they could reshape the cryptocurrency mining industry. Miners have until recently flocked to China because of the country’s inexpensive electricity, local chipmaking factories and cheap labor. They now have little choice but to look elsewhere.

Bitmain, which runs China’s two largest bitcoin-mining collectives, is setting up regional headquarters in Singapore and now has mining operations in the U.S. and Canada, Wu Jihan, the company’s co-founder, said in an interview. BTC.Top, the third-biggest mining pool, is opening a facility in Canada and ViaBTC, ranked No. 4, has operations in Iceland and America, their founders said.

The moves underscore how China’s once-dominant role in the world of cryptocurrencies is shrinking as policy makers clamp down.

Meanwhile, the costs of bitcoin mining is expected to keep rising at a breakneck pace.

 

BTC Mining

"We chose Canada because of the relatively cheap cost, and the stability of the country and policies," Jiang Zhuoer, founder of BTC.Top, said in an interview. He also considered locations in Iran and Russia.

Bitcoin, which surged 15-fold last year, climbed about 6 percent at 5:32 a.m. New York time.

For more on cryptocurrencies, check out the Decrypted podcast.

International investors have had interviews with "commercial real estate companies, economic development organizations, cryptocurrency industry players and Manitoba Hydro," who view the area as a “top-tier location” to open up a mining shop."

As we noted late last year,  CBC News reported that international investors have had interviews with “commercial real estate companies, economic development organizations, cryptocurrency industry players and Manitoba Hydro,” who view Winnepeg City as a “top-tier location” to open up a mining shop. CentrePort Canada, North America’s largest inland port, offers 20,000 acres of cheap commercial land in Winnipeg.

This makes the area increasingly alluriarly interest from Asian investors and South American companies who want to mine cryptocurrencies is currently underway. CentrePort president and CEO Diane Gray said, “we’ve had inquiries from very large non-Asian companies, some of which have roots in North America and are looking to expand significantly."

"They’re having site visits and meetings with Manitoba Hydro and whomever else they feel are relevant to their decision-making process. So I would say strong interest, but still speculative."

 

ntcmining

The environmental downside in mining cryptocurrencies is that it requires a tremendous amount of energy. As the CBC explains, a bitcoin transaction consumes a lot of energy. However, not every Canadian city offers such favorable conditions. For example, Toronto ranks last. New York is not too far behind Toronto, ranked number 19.

Interesting facts about Bitcoin mining and electricity consumption:

In the past month alone, Bitcoin mining electricity consumption is estimated to have increased by 29.98%

  • If it keeps increasing at this rate, Bitcoin mining will consume all the world’s electricity by February 2020/Estimated annualized global mining revenues: $7.2 billion USD (£5.4 billion)
  • Estimated global mining costs: $1.5 billion USD (£1.1 billion)
  • Number of Americans who could be powered by bitcoin mining: 2.4 million (more than the population of Houston)
  • Number of Britons who could be powered by bitcoin mining: 6.1 million (more than the population of Birmingham, Leeds, Sheffield, Manchester, Bradford, Liverpool, Bristol, Croydon, Coventry, Leicester & Nottingham combined) Or Scotland, Wales or Northern Ireland.
  • Bitcoin Mining consumes more electricity than 12 US states (Alaska, Hawaii, Idaho, Maine, Montana, New Hampshire, New Mexico, North Dakota, Rhode Island, South Dakota, Vermont and Wyoming)
  • Growth of Bitcoin Mining Electricity Consumption is set to explode.
  • Meanwhile, the cryptocurrency space has been extremely volatile since the new year, with traders rotating out of bitcoin and into Ripple Labs’s Ripple token. However, that rotation has been thrown into reverse today, with Ripple down nearly 10 percentage points Friday afternoon.

Bloomberg News first reported the Chinese government’s planned curbs on Wednesday. The People’s Bank of China didn’t respond to requests for comment.

 

Ripple

Comments

J S Bach ted41776 Jan 5, 2018 7:40 PM Permalink

It's fascinating watching the forces of greed and usury at war with each other.  If people would just make honest, debt-free money a top priority, none of this would be necessary.  Do away with the Fed and return to a sound monetary policy.  Of course, that means a disciplined and civic-minded populace that is capable of saying "no" to instant gratification and gifts from their dishonest politicians.

Okay... on second thought... maybe it IS impossible.

In reply to by ted41776

knukles J S Bach Jan 5, 2018 7:51 PM Permalink

Wait wait wait wait hold the boat a sec.
I missed this before; that Bitcoin Mining Firms are moving, etc.

Bitcoin Mining Firms?

                   So Bitcoin and crypto-currency mining is ecologically harmful
                                    Calling Silicon Valley.... Protest!

FMWAS

In reply to by J S Bach

Sizzurp J S Bach Jan 6, 2018 3:10 AM Permalink

What is also funny is watching the most authoritarian government in the world try to stamp out BTC, like a bug they can't quite catch. Do they really think they are doing themselves a favor by driving out an industry bringing in wealth to their country? Their vain efforts to snuff BTC betray their true intentions, to enslave their own people and control them with a heavy hand and iron fist.  The person in the PBOC making these decisions is simply confirming to an already suspicious population that they should stiffen their resolve to get both themselves and their money the hell out of there.

In reply to by J S Bach

zebra77a ted41776 Jan 5, 2018 7:48 PM Permalink

Thorium Reactors will be required for the next leg of mining, and bitcoin mining power demand and market cap could potentially resurrect the technology.  With India sitting on 8 million tons of Thorium it's enough power to power the planet at current demand for another million years.

LFTR's in 5 minutes.. https://www.youtube.com/watch?v=uK367T7h6ZY

China apparently has 25 Thorium Reactor projects in a race to develop them. It looks clear they will be building them and that will make them the next energy superpower.  Thorium Reactors could move the entire world's food production to the South Pole if anyone was bothered to work down there - they make that much power..

The United States AEC contracted Union Carbide in the 1950's to make a Thorium Reactor and it was a smashing success making 200x the power of a conventional Uranium reactor.. gram for gram..  It  could not be  weaponized therefore but made electricity so cheaply it was a threat to both coal and oil, and was simply scrapped.

moltensalt.org has all the blueprints for anyone caring to study it..

In reply to by ted41776

Laowei Gweilo ted41776 Jan 5, 2018 9:23 PM Permalink

to be fair, that crackdown has prevented a lot of overseas real estate purchases since it began

the amount of money flowing into Vancouver has sharply decreased... most of my family and friends are mainland Chinese here, and the capital controls are definitely serious.

thing is, most of them already had plenty of wealth here =p and there are still ways, so it's slowed down sharply but definitely hasn't stopped it. it's just much harder now.

it was pretty easy before, no one gave a shit if you spread out your cash between multiple people or what it was used for. now though, they crackdown on that shit hard, force you show actual proof it's for school (and not real estate or commercial purposes), blacklist entire families from transferring _anything_, and in general watch and enforce the rules far more strictly.

but that's also one reason why Chinese miners may choose Canada -- they (or their friends or family) already got significant wealth here. that, and the relatively lose junior company regulation/IPO regulation/and the Prairies got some of the cheapest electricity in the world -- and is probably (based on other countries that use similar systems in EU) about to get cheaper once AB finishes its new auction system.

same reason why Vancouver blockchain/mining companies but also Vancouver cannabis companies are all  (already or considering) setting up shop in the Prairies, too.

In reply to by ted41776

coast1 Theta_Burn Jan 5, 2018 7:40 PM Permalink

my favorite of all time..he plays guitar and I see Jesus :-)...lyrics and musical ability is beyond belief..You know, I am getting bored with my usual websites...They are stagnent..They find a way to make some money and stick with it..It reminds me of musical groups over the decades..Many bands were stagnent but were good at the start, But they made a few million and moved on..Musicians such as pink floyd, maybe zeppelen, beatles for sure, grew in their abilities..I am so bored of infowars, zerohedge, etc...SGTreport has caught my attention, but there must be more out there..David Icke has been interesting..anyway, glad you know of David Gilmore

In reply to by Theta_Burn

JuliaS coast1 Jan 5, 2018 10:03 PM Permalink

This is the year when media fatigue kicks into high gear. I've talked to many colleagues of different age groups and I believe it is taking place right now - people just getting tired, or so dopamine addicted, that they ferociously mash refresh buttons hoping for their site / social network / profile to update. Hoping to get another kick and it's not happening. Like heroin junkies who are running out of functioning veins to stick the needle into.

I think the society, despite still joining the web in droves, is getting a bit tired with it. Addicts don't get the usual kick - the lack of moderation had killed the enjoyment. Content creators are burned out and moving back to their real lives, instead of blogging and vlogging. Kids are getting tired of games even. Not all of them. Not a majority trend, but a turning point nontheless.

This year's end felt very different online. The first major rollout of the censorship machine is also making an impact, silencing many prominent voices. Internet is turning corporate. Net neutrality laws won't reverse the trend to capitalize every bit that moves.

Youtube is now a blend for MySpace / television. Other social networks, even the professional ones like LinkedIn are spam-spreading ghost towns. We're noticing a partial desertification of the internet. Money is drying up and that brings the end to the content oasis, leaving behind a century old snake oil poster (or perhaps an ad for radium water or cocaine drops for babies).

We're still going online as a population, yet a portion is also coming offline - back to reality, where being dry, fed and warm is more important than having "likes". Maybe it's for better, or maybe everything is getting irreversibly worse. Hard to tell at this point.

In reply to by coast1

Theta_Burn JimT Jan 5, 2018 8:07 PM Permalink

Try this instead.. https://www.youtube.com/watch?v=r8fYpFv9brs&list=PLpI6XGqHb_GRVEM3gbogK…

I'm an acoustic guy, I was banging away on the Taylor "Friends" by Zeppelin when I read your post. (C6 tuning)

That Floyd Animals album is the cats ass, and acoustically hard as hell to play and make sound right.

This guy did a fantastic job and has set the bar IMO.. https://www.youtube.com/watch?v=sRdTNHDaK0o

Now you fuckers are going to make me re-tune the 6 string and realize how much I suck...

In reply to by JimT

Son of Captain Nemo Jan 5, 2018 7:46 PM Permalink

"Bitcoin Miners Migrate From China To Canada As PBOC Begins Crackdown"

Just where in "China" are they migrating from?... Coordinates latitude and longitude for ALL those BTC mining servers "si vous plait"?!!!

Hong Kong and Taipei NOT INCLUDED!!!

 

tahoebumsmith Jan 5, 2018 7:55 PM Permalink

According to CoinMarketCap, a total of 16.7 million BTC is currently in circulation . A total of 21,000,000 BTC Can be mined so that leaves only roughly 4.3 million left to be mined. So riddle me this batminer bitchez
Exactly how may chinks does it take to mine the last 1/7 supply before this comes to a screeching halt?

anti-cen tahoebumsmith Jan 6, 2018 5:34 AM Permalink

The 21m limited supply does not stop inflation because the amount of coins double on each fork and miners now just rip the public off for transaction fees that can be as high as $55.00 and BTC has 20,000 dogs to feed that call themselves miners and are all fighting over a few bones. Bitcoin would still work if we only had 100 miners, well as good as it does now because it won't scale and the buzz word of "Block-Chain" has been rewritten and replaced with "Off-Chain" because the developers are making things up as they go along.

In reply to by tahoebumsmith

pods Jan 5, 2018 7:58 PM Permalink

You can bet that a lot of that chink mining is being done with cloned chips made with stolen IP.  I say good thing they are cracking down. But BTC is going to lose out to more efficient cryptos in the end. And huge mining farms kind of goes against the idea of a decentralized currency.

pods

gunzeon Jan 5, 2018 7:59 PM Permalink

i would imagine that many of the Chinese miners would be up for a technology refresh since they've been at it for quite a few years already.

Maybe move to "greener" pastures for electricity also

qr259100 Jan 5, 2018 8:23 PM Permalink

CloudCoin will own this market in a few years. CloudCoin is ready made for transactions, it is completely private and can not be hacked. Bitcoin is a fantastic idea as it potentially gets the money out from under the control of the governments. But it has flaws. The block chain is getting to big to handle so transaction times are getting longer, new quantum computers will be able to crack the encryption and are probably already doing it. It isn’t truly private the public ledger is, well public. I could go on. Let alone the energy consuption. 

For a full analysis of the differences between Bitcoin and CloudCoin and the flaws of the block chain check this site out.

https://cloudcoinconsortium.com/index.html

Get a free book called “Beyond Bit Coin” and 5 free coins here.

http://digitalfrontiernews.com/?affiliates=25

scouzi Jan 5, 2018 9:53 PM Permalink

Apparently the Chinese meeting never happened.

Anyways ....

After all, Canada is a mining country anyways. 

Hydro Quebec should allow miners to set up shop neat their power plants way up north. 

1) They wouldn't need to transport that electricity over 1000+ Kms

2) Cooling costs for miners would be minimal

 

Caveat is that HQ reduces Hydro generation at night (to preserve water levels) and buys cheap US nuclear generated surplus

 

johnnycanuck Jan 5, 2018 10:17 PM Permalink

Canadians made a fortune selling booze to Americans during prohibition. Sam Bronfman made out like a bandit.

We can be a conduit for organized crime this time too.