9.55%
That’s how much of the world’s Bitcoin was mined in Canada in August, up from 1.87 per cent the same month last year, according to new data from Cambridge University. The increase made Canada the fourth-largest destination for Bitcoin mining in the world, up from eighth place.
9.55%
That’s how much of the world’s Bitcoin was mined in Canada in August, up from 1.87 per cent the same month last year, according to new data from Cambridge University. The increase made Canada the fourth-largest destination for Bitcoin mining in the world, up from eighth place.
A global shift, driven by China: The Chinese government’s crackdown on Bitcoin mining in May caused an immediate sharp drop in the country’s hashrate (the share of miners’ collective computing power). The Cambridge data shows Bitcoin mining activity in mainland China was non-existent by July. That’s a huge change from August 2020, when China was the No. 1 country for Bitcoin mining by far—it was responsible for 66.86 per cent of the hashrate that month, with Russia coming in a distant second, at 8.17 per cent.
Canada fills the gap: Long a destination for Bitcoin miners thanks to its abundant electricity and cold climate, Canada has benefited from China’s Bitcoin mining ban. Some Canadian Bitcoin mining companies purchased equipment from Chinese miners who could no longer use it. Geoff Murphy, president of the Toronto-based cryptocurrency miner Bitfarms, told The Globe and Mail the number of bitcoins his company mined each day doubled from seven or eight to 14 following the ban.
Other countries do the same: The Cambridge data shows the U.S. was the biggest winner of China’s cryptocurrency mining ban, rising from sixth place to first over the course of the year in terms of share of the Bitcoin hashrate. U.S. Bitcoin miners were responsible for just over a third of the network’s computing power this August up from 4.2 per cent year over year. The U.S. has a lot of the qualities Bitcoin miners are looking for—low energy prices, abundant renewable power and friendly regulations.
Two cheers for Bitcoin mining: The sector is controversial, mostly because of its intensive energy use and attendant carbon footprint, and Canada hasn’t always welcomed it with open arms. Last month, Alberta’s provincial utilities commission proposed a $7.1-million-plus fine for a Bitcoin mining facility that started operating at two sites without permission. Quebec places strict rules on the sector and briefly placed a moratorium on it entirely in 2018. All those factors likely contributed to the U.S. sliding into the No. 1 slot instead of us.
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Photo: Paul Chiasson/The Canadian Press
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