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Canadian province prevents cryptocurrency miners from getting electricity

Canadian province prevents cryptocurrency miners

An electric utility company in the Canadian province of British Columbia has announced that it intends to put a moratorium on any new orders for electrical connections made by cryptocurrency miners for the next 18 months.

This plan is implemented in order to save money.

In a statement published on December 21, the British Colombian government published the news in a detailed announcement.

According to the statement, the pause will provide the government and BC Hydro the opportunity to develop a permanent framework capable of better balancing cryptocurrency mining workers’ requirements with those of residents and businesses in the region.

This is something that has been interpreted as possibly behind the pause.

Seven Bitcoin mining plants are now connected to the network maintained by BC Hydro.

Wind-based electricity farms with a total capacity of 273 megawatts are not expected to be damaged in any way by power outages.

On the other hand, new cryptocurrency mining projects will not be able to start the process of connecting to BC Hydro, and the progress of projects that are already in the early stages of making the communication will also be paused, according to the report.

In addition, it has been reported that there are already 21 cryptocurrency mining projects requesting a total of 1,403 MW of electricity to operate their operations.

According to information provided by the Ministry, this amount of electricity is equal to the amount required to operate about 570 thousand homes or 2.1 million electric vehicles in the conservation on an annual basis.

The British Columbia Hydropower and Electricity Authority released a paper entitled The Krypto Dilemma in December 2022.

In the report, the Authority issued a warning that an unprecedented number of requests for cryptocurrency mining operations could strain current energy supplies and lead to higher electricity costs for residents of the Province of British Columbia.

Mining (PoW) is now banned in New York State, making it the first state in the United States to implement such a ban.

Any new mining activities not fully operated by renewable energy sources are explicitly prohibited under this rule.

Will the scenario be repeated and the price of bitcoin rise by 600% if this index is believed?

Dennis Porter, CEO of SatoshiActFund, told bitcoin fluctuations are currently at historic lows.

After posting the graph, he noted that the last time bitcoin volatility fell to this low level, the price of bitcoin then rose by 600%.

Data reveals that bitcoin fluctuations are at an all-time low.

In the chart published by Porter, he told that a similar decline in volatility occurred in late 2020.

It should be noted that bitcoin was out of the assembly phase in October 2020, and the price of bitcoin was just under $10,000.

Fast forward to nearly a year later, when bitcoin reached an all-time high of $69,000 in November 2021, representing an increase of nearly 600%.

According to cryptocurrency analysts who track historical bitcoin volatility levels, volatility fell back to near current levels in late 2018.

Then the market was downward matching the current situation, with crypto prices falling all year round.

Does Bitcoin re-date itself?

At the time of writing, the price of bitcoin fell slightly over the past 24 hours at $16,674.

Bitcoin has been stuck in a narrow range between $16,570 and $16,911 since December 21.

Ali Martinez, Krypto Analyst, believes that continuous movement outside $16,000 and $17,000 may likely determine the trend.

Referring to IntoTheBlock data on the network, bitcoin is located between two important walls:

One is priced at $ 16600, with 1.46 million addresses containing bitcoin 915000, and the other at $ 17000, with 1.27 million addresses containing a thousand bitcoin 730.

However, continued movement beyond this range could determine the next direction of bitcoin price.

As 2023 approaches, investors must recognize that the current macro environment, lack of regulation, trust in the crypto market, and an unclear regulatory stance may continue to squeeze cryptocurrencies.

If you don’t invest in the Crypto market, find out what you missed!


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