Canada, Future Home of China’s Crypto Mining Operations
Canada has risen up the list for China-based companies to choose as a crypto mining operation hosting locations in the last few months.
Bitcoin / Crypto Mining in China
China is currently home to three-fourths of the Bitcoin mining operations in the world. China’s trend to mine crypto currency started in the early 2013’s but died down by 2015. The reason it died, related to the price of cryptocurrency. In early 2013, Bitcoin had a surge in price, which drove interest into the market to mine the coin, but by 2015 Bitcoin’s price dropped to a point where companies could not make breakeven from mining. Bitcoins’s investment cost (GPU’s, electricity cost and hosting locations) was high, while the return was low; this drove interested away from mining.
In 2017, cryptocurrency still started slow but by the end of the year, it took a 180-degree turn. During the year of 2017, Bitcoin, the most recognized cryptocurrency, rose to its peak at $19,783.21 USD. With the huge surge in price, companies, and individuals alike, started jumping back into the business of mining cryptocurrency. China investors were heavily attracted to the idea of crypto and started the trend to mine and trade the currency as it was not heavily regulated by the government yet. The Chinese government has since then put up fences/regulations on crypto operations.
Crypto Miner Hosting’s Consideration
Electricity – the variable cost in the mining operation
Internet– How safe is it? Speed?
Safe Environment – Location
The province of British Columbia in Canada is able to provide solutions to all three of the above.
In China, electrical power pricing is governed by each of the province’s government; This leads to varying prices province by province based on what the government thinks is reasonable. The instability in cost is a major issue as 80% of the cost of mining is from electricity.
B.C. is being targeted as the next location for miners for our vast abundance of cheap electricity. Quebec and Manitoba who also leads in cheap electricity is already reaching its capacity and has since been turning down new miner hosting facilities.
MiningSky has worked diligently to build partnerships with power plants to be able to provide low stable priced electricity, even to small volume miners.
Internet Security and Stability
In China, the internet is closely monitored and regulated by the government. This can be shown through the banning in the use of Facebook and Twitter, two of the big social media platforms in the world. Aside from having the government monitor the internet, news over the recent years has reported that China is home to one of the more advanced hackers, who have hacked into Google and even the US government. Alongside the issue of security, the average broadband speed of China is 4.1mbps, which is very slow compared to the neighboring countries such as South Korea at 26.7mbps.
Below is an interactive map by Fastmetrics showing the different broadband speeds all over the world.
In Canada, the internet is not as heavily regulated by the government. The internet is more secure in terms of data protection and regulations. Users have more control or regulations in what data is shared and what data is kept private. Aside from security, Canada’s broadband runs at an average of 13.1Mbps, which is three times the average of China.
At MiningSky, each of the miner hosting containers will be connected via optical fiber with an onsite network engineer. The engineer will make sure the internet’s connection is stable and running at all times.
In China, there are two types of miners, small volume mining operations, and large-scale operations.
Small Volume Mining Operations (500-1000)
In order for small volume miners to be able to mine more coins, they need to combine their efforts with other small volume miners. The collaboration leads to issues such as owners of a small volume of miners not having a voice or access to their machines due to security risk concerns from owners of the big volume of miners. Aside from the security risk, having a cheap and secure hosting location to host miners is an issue. Having many collaborators would mean users wanting to know where their miners are at all times to protect their own asset; but with disclosed information, it leads to a higher risk of theft.
Large-scale Mining Operations (5000-10000)
For large scale operations, security would not be a major concern but the factor that comes into play is the huge investment/cost. For companies to start such a big operation, they would need a huge startup fund. Most individuals do not have such funds to start and run the operation, especially with the cost of land in China.
MiningSky can help both small volume and large-scale mining operations solve their safe environment concerns; so mining rig owners do not need to worry security. There is an onsite employee (engineer/tech) monitoring the machines 24/7. Aside from the onsite employee, all mining locations are kept in secret, only MiningSky and the employees managing the machines know the location. New customers are never taken to any running hosting locations; this is to prevent locations of mining farms being released out.
MiningSky is your ideal choice for blockchain miner hosting in Canada, as we provide:
- Low-cost electricity for our mining operations/hosting services
- Stable and secure internet
- Safe Environment for our hosting sites