Bitcoin mining is all the rage right now and the future looks very bright for it. What exactly is bitcoin and what does a cryptocurrency miner do? Why are Canadian mining firms poised to capitalize on this trend? These questions and more will be answered in this article.
What is Bitcoin?
Today it is used as a form of digital payment. It is actually a computer file used to pay for merchandise or a service, or it can be bought and sold on exchanges. Each file is stored in something known as a digital wallet. Bitcoin and similar currencies can be transferred from one person to another over a personal computer or even a smartphone. Any time there is a transaction involving bitcoin, it is recorded publicly on a list. This list is referred to as a blockchain.
What is Crypto Mining?
To start with, it is an abbreviated form of the word, « cryptocurrency, » and then the term « mining » follows it. Its definition is that it is a process involving bitcoin or any other form of cryptocurrency, and it is verified as a result of a transaction. Experts in the industry say this transaction is then added into the public ledger for blockchain. Although this process is most commonly used with bitcoin, other forms of cryptocurrency can be used. It must be mentioned though that not all forms are able to be mined; however, bitcoin IS.
Why is Canada Considered the Crypto Mining Hub?
Now that you know the basic definition of these terms, it is time to talk about why this is becoming so popular in Canada. Out of all the locations in the world, Canada has been the benefactor of the most interest in crypto mining, including bitcoin. But why? There is not some complicated answer to this question, rather a simple one. It costs less to run a mining service in Canada, particularly in Quebec or other French Canadian regions. This is because of the cold weather, the electric bills there are fairly inexpensive.
Another reason for the explosive number of requests for permission to mine cryptocurrency in Canada is the current light regulations. The Bank of Canada is in charge of regulating the currency in all its forms. However, it does NOT consider this to be a form of money. That means, at least for now, the Bank does not regulate it. Will that change over time? That remains to be seen.
Are There Any Legal Issues Regarding Crypto Mining in Canada?
As we just talked about, cryptocurrencies such as bitcoin are not considered to be legal tender under the Bank of Canada Act. Nevertheless, it IS considered taxable income. This means all of Canada’s applicable tax laws regarding transactions with digital currencies ARE ENFORCED. This is important to talk about, since ignoring this fact can lead to problems.
Despite what we spoke of regarding the aforementioned issues, bitcoin and its ilk are completely legal. Would-be investors need not worry about that. In Canada and other parts of the world, it is absolutely legal to use cryptocurrency in its various forms. They are also able to be bought and sold on special exchanges. Additionally, many merchants allow this to be a form of payment for their items or services.
What Does the Future Look Like for Crypto Mining?
In actuality, it looks quite promising. Especially in light of the recent worldwide pandemic. What does COVID-19 have to do with crypto mining? Because of the virus and the ensuing international shutdown, many people are turning to the digital currency instead of the typical currency in their home country. They are beginning to realize the usefulness of payment forms like bitcoin, as well as the firms that mine them. Bitcoin and the like are beginning to take flight in the financial industry. Likewise, the interest in becoming a mining firm for them has sprouted, particularly in the French Canadian provinces. We digress for a moment to tell the story of a small Texas town’s survival during the pandemic. This IS relevant because they forrayed into the world of bitcoin mining. Instead of its normal mining process involving aluminum, due to a statewide shutdown, they were forced into other mining avenues. They chose bitcoin mining and the rest is history. The town was saved.
What is Special about Crypto Mining in French Canadian Provinces?
Back in late 2018 bitcoin mining observers declared that provinces such as Quebec would see a gigantic spike in interest. This was said to be true of individual investors as well as prospective miners. So, it is now the middle of 2020. Were they correct? From the looks of things, the answer is yes. Partly due to the reasons we stated earlier. A brief recap of those reasons included financial and regulatory issues. Is there anything else to know about this?
In 2018, there were some political issues in Canada that had to be resolved as well. Many professionals felt that the future of bitcoin and other forms of crypto mining were at stake. Since then, those issues were resolved and Canada is now considered to be THE HUB of the entire cryptocurrency industry. Although it is gaining popularity all over the planet, the focus of all the attention is on Canada. As we mentioned, the French provinces are taking the lead.
What Are Some Advantages of Using a Canadian Crypto Mining Firm?
As we have been discussing, some advantages to using a Canadian firm for this type of investment are financial and regulatory factors. Another critical point is that in that country, bitcoin mining is considered an essential part of their overall financial picture. In Canada, cryptocurrency is NOT just a fad or a fleeting thing that may go out of style. It is real and valuable and a force to be reckoned with. With that level of focus on it, bitcoin and similar currencies receive a high level of professional treatment. There are now a host of firms to turn to, in addition to specific exchanges we mentioned earlier. In Canada, this is taken extremely seriously. So it is safe to invest in it or to mine it.
Where to Go for More Information?
With the increasing popularity of bitcoin mining and the like, scores of helpful information on this topic can be found on the Internet. You can look over some details on the various exchanges. Additionally, there are pertinent resources for all related subtopics of this industry. Whether you are a beginner or a seasoned investor of cryptocurrency, you can find essential reading material on the Internet. One great source is the very place you found THIS article. Look at the entire website and you will find a wealth of sources. This particular source even has contact details in the event you want to call and ask questions. Check them out!
Who Is D-Central and Why Are They Relevant?
This firm is a leading expert in bitcoin mining. Not only do they have the knowledge, but they also have the hardware and the hands-on expertise to see any investor has a successful experience. D-Central is the perfect partner no matter what your level of familiarity is with this subject. Whether you wish to invest or become a mining professional, talk to this company first. They are a class-A firm in this industry and are well-known throughout North America. Contact them today, you will not be disappointed.