Crypto

Cryptocurrency mining sites: it’s hard to make a profit – L’Étoile du Lac

It may seem surprising that we find cryptocurrency mining sites in La Dore and Saint-Félicien. However, the owner, Paul Paradis, is considering closing them as difficulties multiply.

A businessman who owns an accounting business in Saint-Félicien got a good taste in 2017 and decided to start mining cryptocurrency. He bought a building in La Dore and installed basic electrical equipment to house 350 computers owned by a client who rented out their premises to mine cryptocurrency.

“Everything went well at first, but subsequently the requirements of Hydro-Quebec changed. And since 80% of production costs are related to electricity, profitability has become more challenging. Moreover, I was asked to post a bail of $ 50,000. This created uncertainty for my client, who decided not to do business with me anymore, and I understand that, ”explains Paul Paradis.

Therefore, the accountant decided to continue working on his own, using about thirty computers, which he changed depending on the season.

“Since the La Doré building is empty, I earn cryptocurrency there in the winter, because the process allows heating the building, and in the summer I use my Saint-Félicien site. “

And depending on price fluctuations, Paul Paradis may stop producing it because it becomes unprofitable.

Impressive objects

Paul Paradis regrets that he has invested more than $ 135,000 in his two ventures and that he still finds it difficult to get along with Hydro-Québec.

La Doré’s spaces are particularly impressive thanks to two huge fans that have been installed to ensure proper ventilation of the building. The doors are protected with a metal mesh. Very powerful computers generate a lot of heat for mining cryptocurrency.

Another installation is located behind the accountant’s office on the Boulevard Sacré-Coeur in Saint-Félicienne.

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Paul Paradis doesn’t understand the Hydro-Quebec logic in the cryptocurrency file.

“We have renewable energy sources and they generate significant revenue for bitcoin production. On my scale alone, it was an electricity bill of $ 25,000 a month. “

The latter mentions that small cryptocurrency producers are at a disadvantage.

“Right now, I have a rate of 6 cents per kilowatt-hour, but a deterrent rate of 15 percent was introduced to scare people away. It’s simple, we don’t want this in Quebec. I have acquired the right, but Hydro-Quebec wants to challenge it. “

Paul Paradis argues that if the situation does not improve, he will stop mining bitcoins. According to him, it is the most reliable and most widely used cryptocurrency. On the other hand, volatility is always present, and there are risks when trading, because its value fluctuates a lot.

Hydro-Québec oversaw the sector

Hydro-Quebec is not against cryptocurrency mining projects in Quebec. On the other hand, she wanted to properly monitor the practice due to the high demand that has emerged since 2018.

“We had requests from all over the world and they amounted to 18,000 megawatts of energy. Which is huge. Therefore, we asked Régie de l’énergie for a 300 MW power unit designed for cryptocurrency mining. A request for projects was announced and 30 megawatts were allocated, ”explains spokesman Jonathan Cote.

He confirms that a moratorium was introduced in 2018 and that a deterrent tariff of 15 cents per kilowatt hour was indeed imposed for any unauthorized consumption.

On the other hand, since Paul Paradis was granted the right to produce cryptocurrency before that date, he still enjoys a commercial tariff M.

“I don’t want to go into details of a specific case, but the price is guaranteed for the number of kilowatts allocated. If the buyer wants more, he will have to pay 15 cents. “

On the other hand, since 270 megawatts were not allocated in the power unit, Hydro-Québec asked Régie to change the parameters to make the standards more flexible.

“It might even be on a first come, first served basis. “

In terms of security deposits, this is the standard for Hydro-Quebec in cases of cryptocurrency mining due to price fluctuations.

In addition, the CAQ government wants to better regulate cryptocurrency taxation. Revenu Québec will coordinate the work of a committee composed of the Autorité des marchés financiers (AMF), the Quebec Ministry of Finance, Sûreté du Québec (SQ) and the Canadian Tax Agency (ARC).

In Quebec, 90 cryptocurrency companies consume a total of 400 megawatts.

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