PAINFUL truth: Bitcoin mining ban is necessary

Late last year, BC placed an 18-month moratorium on new Bitcoin mines connecting to the provincial power grid.

They were not 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 looking at stricter regulations.

Why are all these provinces suddenly turning against Bitcoin mining?

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

A decade ago, you probably didn’t know a single person with an electric car. Now it’s almost certain that you do.

As of last September, electric vehicles accounted for 17.5 per cent of all new car and light truck sales in BC.

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

It is good for our air quality and the fight against climate change. But that also means a lot more power needs.

Energy and Mines Minister Josie Osborne said the Bitcoin mining moratorium would “preserve our power supply for people switching to electric vehicles and heat pumps, and for businesses and industries undertaking electrification projects that reduce carbon emissions.”

She also noted that Bitcoin mining consumes huge amounts of electricity but does not generate many jobs.

That’s because Bitcoin mining is not mining. It’s just a whole bunch of data processors, which help run the network of Bitcoin transactions. In exchange for doing the energy-intensive math calculations that are part of the system to maintain the Bitcoin blockchain, a mining processor gets a new Bitcoin as a reward once in a while. Even after the cryptocurrency’s massive fall over the past year, a single Bitcoin is still worth around $28,000 as of now.

To squeeze out as much profit as possible, Bitcoin miners look for cheap electricity and cool temperatures. That is why Canada has been a popular travel destination.

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

Sure, it might make a few miners money, and provide some work for technicians and construction workers. But that same power can also be used to create industries with much more staying power, employing many more people – software and video game development, film and TV production, manufacturing, construction – almost anything will create more jobs per kilowatt.

The temporary moratoriums are good. But there are already around 13 mining facilities either in operation or under development in BC

Our province remains a net power exporter. But we will need more electricity when we wean ourselves off fossil fuels.

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

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