Canada has set its sights on the most popular cryptocurrency on the market, Bitcoin, as it aims to replace China as the world’s leading Bitcoin mining population. With Bitcoin interest and adoption high among Canadians, trying to appeal to the global Bitcoin mining industry seems like a natural fit for the forward-thinking country. Canada’s online casino industry is a prime example of a sector that has gradually broadened its scope to include players who like to gamble in the cryptocurrency, too, and more sectors want in. Let’s take a look.
China Cracking down on Bitcoin Miners
China used to be at the forefront of the international Bitcoin mining market, as many mining companies are based in the country. As mining, which includes digitally verifying transaction records of newly minted Bitcoins and getting rewarded in the cryptocurrency, requires a significantly high amount of energy to be carried out, Chinese authorities became worried about excessive electrical energy spending. Even though the Bitcoin system was devised as a decentralized platform on all fronts, the biggest chunk of mining is conducted by five mining pools that are owned by a handful of companies which control 75% of the global market. In 2017, mining required more energy than almost 160 countries combined. As energy usage seemed to soar, China decided to crack down on the industry, driving Bitcoin mining companies to seek relocation on friendlier terms. As the change in policy was long-anticipated, some of them had already mitigated risks by moving infrastructure and operations outside of the Asian country.
Canada Ready to Lure Mining Companies to Quebec
Canada seems like a prime location to move to, as the country’s energy industry has put forward proposals that seem beneficial for both sides. Quebec in particular has been spearheading the lobbying, as the country hopes to put its surplus energy supplies to good use in return for tax revenue and a boost to the region’s and the country’s economy. As one of the leading producers of hydroelectric power across the globe, Quebec carries a lot of traction in the negotiations, as it has cheap excess energy to offer. Hydro Quebec is currently lobbying with roughly 30 significant cryptocurrency mining companies who are thinking of moving operations there, while Bitmain, the biggest blockchain miner worldwide, has already set up shop in the country, followed by BTC.Top, another crucial player in the mining sector. Other countries like Bhutan, Venezuela, Chile and Kazakhstan (already a mining hub) are following Canada’s lead in trying to lure miners.
Canadian Gambling Industry Gradually Endorses Bitcoin
It seems that Canada will stay comfortably at the head of this race, as it has seen the cryptocurrency accepted across a number of sectors in the country, and very prominently its online gambling industry. Although gambling in Bitcoin carries significant advantages for online casino players, such as anonymity and speed, it has not yet been adopted consistently across the industry – for example, a Lucky247 review of the major popular online casino, reveals that payouts and bonuses are still set largely in US dollars, as many players prefer dealing in familiar fiat currencies to play games such as slots, blackjack, roulette and so on. Yet things are moving in that respect and more and more online casinos are offering the option to make deposits and take payouts in Bitcoin. With mining companies relocating to Canada, this trend will probably go upwards.
As China continues to battle the mining industry, it only remains to be seen how Canada will benefit from this massive mining exodus – and how effective its lobbying efforts will be.