PAINFUL TRUTH: Banning Bitcoin Mining Is Necessary

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Late last year, British Columbia imposed an 18-month moratorium on new bitcoin mines connected to the provincial power grid.

They weren’t the only province to do so. Manitoba had also implemented a similar moratorium, and Quebec had tightened regulations and increased electricity costs for miners. Ontario is also considering stricter regulations.

Why are all these provinces suddenly turning against Bitcoin mining?

The answer is the Teslas and Kia Soul EVs and Ioniqs and TransLink electric buses that are increasingly seen on roads around Metro Vancouver. Not to mention the additional heat pumps that replace or complement natural gas heating systems.

Ten years ago, you probably didn’t know a single person who owned an electric car. Now it is almost certain that you do.

Last September, electric vehicles accounted for 17.5% of all new car and light truck sales in British Columbia.

It is almost certain to exceed 20% this year, if it hasn’t already.

This is great for our air quality and the fight against climate change. But it also means a lot more demand for electricity.

Energy and Mines Minister Josie Osborne said the bitcoin mining moratorium was intended to “preserve our electricity supply for people switching to electric vehicles and heat pumps, and for companies and industries undertaking electrification projects that reduce carbon emissions.

She also noted that Bitcoin mining uses large amounts of energy, but does not generate many jobs.

This is because Bitcoin mining is not mining. It’s just a whole bunch of computer processors, which help run the Bitcoin transaction network. In exchange for the power-intensive mathematical calculations that are part of the Bitcoin blockchain maintenance system, from time to time a mining processor receives a new Bitcoin as a reward. Even after the cryptocurrency’s massive downfall over the past year, a single Bitcoin is still worth around $28,000 right now.

To get as much profit as possible, Bitcoin miners seek cheap electricity and cool temperatures. This is why Canada is a popular destination.

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But Bitcoin is far from the best use of our power.

Sure, it could make some money for a few miners and provide some work for technicians and construction workers. But the same power could also be used to create much more sustainable industries, employing many more people – software and video game development, film and television production, manufacturing, construction – almost anything would create more jobs per kilowatt. .

Temporary moratoriums are good. But there are already about 13 mine sites in operation or under development in British Columbia.

Our province is still a net exporter of electricity. But we’re going to need more electricity as we wean ourselves off fossil fuels.

A permanent ban on Bitcoin mining is one of the simplest things we can do to ensure that electricity is there for our clean energy future.

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