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Crypto-Mining: A Bane on Canadian Resources

Alisha Jose

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Source: Unsplash

When it comes to crypto-mining, Canada has numerous appealing features: cold weather, vast amounts of hydroelectric power, strong wireless connections, and stable electricity rates. The cold weather matters a great deal. The intense computer processing of mining emits a significant amount of heat, which requires further electricity for ventilation and air conditioning. Cold weather can help to reduce these costs.

Of course, crypto-miners’ attraction to Canada has led to a drain on the country’s resources. One example involves Manitoba Hydro. The electric power and natural gas utility in the province of Manitoba has said that it’s having to respond to a high volume of requests for electric service to potential new cryptocurrency operations.

Such power-intensive operations are seriously testing grids across Canada. As a result, new projects could threaten Canada’s low-carbon transition significantly, eating up either low-carbon electricity that could otherwise be used to electrify industrial, heating and transportation processes or fossil fuel-generated power with high emissions.

Let’s further look at how crypto-mining is adversely affecting energy resources in Canada and the alternatives and solutions that could help to reverse the process.

Source:Pixabay

Source:Pixabay

Hydro-Quebec raising energy prices for crypto miners

Eastern Canadian province Quebec provides one of North America’s lowest power rates. The country’s largest electric supplier, Hydro-Quebec, generates, transmits, and distributes electricity. The company was established by the government in 1944 and has more than four million customers.

The utility has recently been wooing crypto-miners to use its surplus electricity. Due to a massive number of requests for crypto-mining operations, however, the province responded by raising prices. It responded by making the cost of electricity overwhelmingly expensive for crypto-miners until it manages to work out how to handle an increased demand from an industry in need of more energy, reported Bloomberg.

Regie de L’energie, the provincial regulator, granted permission to Hydro-Quebec to charge 15c per KW hour to blockchain firms, a 3X increase in price. The temporary pricing doesn’t affect current clients and their operations, which comes to around 120 megawatts.

The utility further proposed that blockchain firms would need to bid for electricity and provide details on the jobs and investment per megawatt they will generate. The bid starts at 1 Canadian cent ($0.0075) per kilowatt-hour above the old industry rate- approximately a 20% rise.

Cryptocurrency failing to take the world by storm

According to a study from payment processing company Worldpay, cryptocurrency will comprise zero percent of global e-commerce payments by the year 2021, down from the current one percent. The research found that other alternative payment methods are instead a greater threat to VISA and MasterCard. Both mobile wallets and e-wallets, for example, are gaining traction. As money can be paid into wallets in a number of different ways, they provide flexibility and convenience to customers.

E-wallets are sometimes used interchangeably with mobile wallets but, while they both store payment details, they work differently. Digital wallets are more commonly used in online transactions and aren’t necessarily used on mobile devices. Mobile wallets are for those who prefer not to use a physical wallet to make in-store purchases.

Therefore, these wallets need to be used on mobile. Android Pay, Samsung Pay, and Apple Pay are two of the more common examples of mobile wallets. PayPal is a digital wallet but can also be used in conjunction with mobile devices and mobile payment services, in which case it acts as a mobile wallet.

Close to 78% of consumers in the US understand mobile wallet capabilities and 32% use a mobile wallet such as Android Pay or Apple Pay. A number of industries are increasingly adopting mobile wallets, such as governments, fintech providers, telecom companies, and banks.

Payment wallets are also growing in popularity in the online casino industry. 888, for example, accepts Apple Pay and Neteller in addition to payment methods such as Trustworthy, and Visa and Mastercard. If an established company such as 888 can feature wallets alongside the likes of Visa and Mastercard, it provides credibility. Aside from wallets, also on their way up are bank transfers. This method is expected to become the second most popular online payment method, with a 16.5% share of the market.

Bitcoin: a drain on resources

Bitcoin remains the most popular cryptocurrency. However, its decentralization has proven to be inefficient. The miners are in competition to validate transactions to the bitcoin’s universal ledger (aka the blockchain). They race to solve advanced mathematical puzzles, which require a vast amount of computing and processing. Mining systems go through millions of numbers and letters to come out as the winner.

As there has been an increase in the cost of bitcoin, the incentives offered to mine the cryptocurrency have also risen. The hash rate of the network – a way to measure computation activity – has grown in line with bitcoin’s market rate. Further, miners are incentivized to use the most cost-effective electricity available.

It’s their highest business cost: each additional cent they spend on powering their machines eats into potential profits. Half of the world’s leading mining pools – banks with specialized computers kept in warehouses – are thought to be in China, according to a study from the University of Cambridge. China utilizes vast amounts of coal when making electricity, which raises bitcoin’s carbon footprint.

Due to the inbuilt secrecy of the bitcoin network, however, we don’t have a way of knowing the number of people who are mining or the efficiency of the equipment being used. There’s an estimate from Digiconomist that assumes that miners spend 60% of mining profits on electricity.

Another study, by crypto-entrepreneur Marc Bevand, asserts that the energy usage from the bitcoin network is approximately five times less, as he believes that miners use more efficient equipment. Bevand approximates the actual energy usage is the same as a single holiday season of decorative lighting. Of course, that’s still a vast amount.

When it comes to solutions, there’s one thing that we can do and that’s to utilize cleaner power, such as power that would otherwise have been wasted.

Source:Pixabay

Source:Pixabay

Hydroelectric mining: a potential solution

Hydro-mining refers to a method of crypto-mining that utilizes water cooling systems and hydroelectric power to create a highly-profitable and energy-efficient mining operation. A company such as HydroMiner utilizes hydropower for its mining operations: one of the lowest cost and most effective renewable energy sources available. It is natural, carbon neutral, and eco-friendly. Further, the use of water when cooling mining equipment can reduce expenses by 85%, less than the average European electricity costs.

Environmentally speaking, crypto-mining needs to transition to a greener energy source that reduces electricity consumption costs and generates it by using renewable energy sources, reducing the carbon footprint left from such operations. The use of water-cooling in the process ensures that the processes and mining rigs remain at a safe operating temperature at a lower cost.



This establishes a more efficient mining environment with reduced downtime caused by failure. Further, as a result of the improved cooling mechanisms, hydro-mining can maintain lower temperatures at a high density. Therefore, mining equipment can be optimized for the highest levels of mining power that it can provide at a consistent tempo.

Electricity is the largest overhead of mining operations. By utilizing one of the most natural and cost-effective methods of electricity generation in hydropower, energy consumption is significantly reduced from that of traditional mining farms. Less energy consumption results in higher profit margins and more cost savings, which are attractive to investors. More importantly, it’s great news for Canada and the environment as a whole.





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Alisha Jose does not belong to our organization, her opinions are her own. With a finance major and a passion for writing, she contributes for AMBCrypto.

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Boss Crypto Review – Inside The Crypto Academy

Guest Author

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Boss Crypto Review - Inside The Crypto Academy
Source: Boss Crypto

As a cryptocurrency trader and investor myself, I understand how important high-quality information, market analysis and educational material is. In this Boss Crypto review [bosscrypto.co] I am going to go behind the scenes and do my best to outline the pros and cons of their new Crypto Academy.

Let’s Begin…

Welcome To Boss Crypto

After you fill out your application form and activate your free trial you will need to wait for 6-12 hours for your application to be reviewed. When you are accepted you will receive three emails from Boss Crypto.

  1. An invitation to join the private channel
  2. A welcome email which contains a one-click cancellation link in case you want to cancel your free trial before getting billed
  3. Your login details to the membership site where you get access to the crypto trading course, the portfolio and the lessons archive

If your application is not accepted you will receive a message stating that your subscription has been canceled, they have wiped your details from the database and you will need to apply again at a different time.

Your adventure begins with a personally written welcome email from Tom at Boss Crypto. I have previously seen free trading courses that he has put out, as well as enjoyed reading his writing on Medium and Quora so it was nice to receive a personal email from him.

Joining The Private Channel

After accepting the invitation to join the private channel you will be taken to the #get-started channel. There is a ton of reading to go through here to help you make the most of the Boss Crypto channel. There are complete support documents all hosted on Intercom which makes adjusting to the new environment quite easy.

Source: Boss Crypto

You will quickly learn that there are two main channels used by the Boss Crypto traders and one main discussion channel. Even though there are 22 channels that are used for all kinds of discussions between members it is surprisingly easy to get all of the information you need in just three of those 22 channels.

My first experience with the type of content in the Boss Crypto Private channel was a little surprising. There is a focus on education, unlike anything that I had seen in the past. When I arrived I found a number of in-depth video market updates, updates on their positions, portfolio and market analysis all in the last few days. The way it was framed was all to try to explain the reasoning and methodology behind the decisions themselves to try to help the students [me] understand how to think and how to act in different market conditions.

Signing In To View The Course

You receive your login credentials as soon as you start your free trial so you are free to jump in and start the course straight away.

The course is divided into four main modules with a fifth bonus module.

Boss Crypto

Boss Crypto

The overall experience of taking this course is fantastic, as you can see from the above screenshot [Technical Analysis Next Level Setups] each module is broken down into a number of lessons and then those lessons are broken down into individual topics. So one module can contain over 5 hours of video lessons.

Reviewing the Boss Crypto Trading Course

Here is what you learn in the Crypto Trading Course:

Module One – Cryptocurrency Essentials and Foundations

  1. Cryptocurrency, blockchain, and Bitcoin explained clearly for the first time
  2. How to get your fiat to Bitcoin – simple, fast, safe.
  3. How to safely store your cryptocurrency so you never get scammed or hacked.
  4. Get access to our top cryptocurrency exchanges and learn how to use them
  5. Learn how to read a chart and completely understand what it all means.
  6. Learn our formula for valuing cryptocurrency and blockchain projects.

This section is targeted for people that are new to cryptocurrency and trading. It starts with an overview of Bitcoin and Blockchain technology which would be helpful for those that still don’t quite understand the technology. It is followed by a basic overview of the best practices you should follow to keep yourself while investing in the cryptocurrency markets as well as a summary of the basic skills you need.

Module Two – Trading: Emotions, Plans, Mindset and Success

  1. Conquering Emotions, Mindset and Success
  2. Goal Setting To Conquer Trading & Life
  3. Organize Your Life and Your Trading
  4. Your Trading Plan [Includes Downloadable Template]
  5. Your Trading Journal [Includes Downloadable Template]

This was an interesting section. It starts out talking about the role emotions play in trading and investing and really helps you to understand the significance of your mental state. Tom then begins to break down his own life in regards to organization, goal setting, trading and formulating a success mindset. This was a really unique section and I really enjoyed it.

He then brings it back to trading providing you with a trading plan that you can use and optimize for your own specific situation. He also provides his trading journal template which I have been using religiously since receiving it.

Module Three – Technical Analysis: Next level setups and strategies

  1. Basics of technical charting
  2. Are We Bullish Or Bearish? The Basics Of A Trend
  3. How To Use Trend Lines
  4. Support and Resistance Levels
  5. A Complete Run Down On Technical Indicators
  6. Fibonacci Levels
  7. Classical Charting Patterns
  8. Trading Candlestick Setups

This is for the intermediate traders and go through the essential knowledge you need to successfully analyze markets using a technical framework. There isn’t anything that I could think of that was left out however as technical analysis is a large field there are plenty of other aspects you could research further, such as Elliot Waves theory etc.

Module Four – The Boss Crypto Trading Strategy

  1. The Setups
  2. Focussing On The Trend and Market Cycles
  3. Drilling Down Multiple Timeframes
  4. Managing The Trade – Your Complete Guide
  5. The Fractal Model
  6. Position Sizing and Risk Management

This is the most in-depth course I have seen that teaches an actual trading strategy. In this module, you learn the exact strategy used by the Boss Crypto traders. I found this module quite intense and had to re-watch it to make sure I fully understood all of the concepts that were explained. However, after going through it I had a complete framework that I could now use to evaluate the markets. Combined with the support I received in the private channel meant that I could use the strategy, and ask for help whenever I got stuck.

Reviewing the Boss Crypto Private Channel

There are two main trades channels that you will need to follow to get value from the private channel. Those channels are #trades and #trades-2. In these channels Boss Crypto – Boss and Boss Crypto – Alex post their trades and analysis.

Source: Boss Crypto

There is no real substitute for seeing the real thing, but I thought I would share the above picture to give you an example. This was half of the post from yesterday’s market update from Boss.

In the private channel there are two other main trades channels #Trades-4 and #Trades-5 where their partner from JRM Jason Jenkins and their fundamental analyst who has been investing since 2011 post their trades and analysis.

Between the four trades channels there is an incredible wealth of information posted.

I made use of the #help channel a number of times posting questions about exchanges, technical support, information about wallets and generally anything that I needed help with. My questions were always answered by another member of the community or Boss himself often within minutes.

The main discussion channel #trades-chat was extremely active and I was learning a lot just joining in the discussions there with other students.

Overall the experience of using the Boss Crypto private channel was extremely rewarding. They cover literally everything that I need. From news, to support, analysis, market updates, discussion channels, ICO analysis, trades, portfolio suggestions and just a fun place to hang out the Boss Crypto private channel has it all.



Conclusion

I recommend anyone reading this to try out the Boss Crypto Academy with their 7-day free trial option, just click the “try for free” button and submit your application. You can sleep easy knowing that even if you forget to cancel your subscription before the end of the 7-day free trial you are covered by their 30 day money back guarantee to get a hassle-free refund.

While the price of the service is $99/mo if you break it down to $3 per day, this is one of the absolute best investments that you can make in the space. So please, don’t take my word for it, head to Boss Crypto and try it yourself for free right now.





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