This week, a city in the United States became the first in the country to ban digital currency mining. According to the city council of Plattsburgh, New York, mining is prohibited for 18 months in the area. Offenders are subject to pay fees for each day of infraction. The news comes amidst increased optimism towards the state of Canada’s mining industry, as advocates believe that Canada has the opportunity to become an industry leader in North America.
Digital currency mining continues to remain an attractive revenue stream for large mining firms. However, the profitability of the process is reliant on two factors: the value of the mined digital currency, and the cost of electricity.Since digital currency mining uses a large amount of energy, companies attempt to leverage cheap electricity. This means that in order to ensure that the company is as profitable as possible, operations are often driven in large numbers to similar geographical locations. As a result, digital currency miners viewed the city of Plattsburgh as an attractive option. According to the city’s mayor, however, the emergence of digital currency miners in the area raised electricity prices for both the city and its residents. With the 18 month ban, Plattsburgh’s council stated that it aims to enforce “Protection, order, conduct, safety health and well-being of the residents of the City which are presented as heightened risks associated with commercial cryptocurrency mining operations.”City officials further stated that the presence of digital currency miners in the area accounts for an increasingly exorbitant amount of the city’s overall energy use, and claims that the city’s residents are paying more out of pocket as a result.
In Canada, the digital currency mining industry continues to grow, with companies like Hut 8 having recently launched on the TSX Ventures Exchange. Purportedly, the Toronto-based operation is now the world’s largest publicly traded digital currency mining company. Canada’s other major players include companies like Bitfarms and HIVE Blockchain Technologies, which continue to investigate new areas in Canada where currency mining is profitable. However, some Canadian figures share similar sentiments to that of Plattsburgh’s mayor. Recently, Québec Premier Philippe Couillard said he didn’t see the value in Bitcoin mining, and stated that he is not interested in the billion dollar industry. Couillard did state, however, that he sees value in blockchain technology companies that hope to create added value for society.
Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinsquare.
[maxbutton id="2"]
