The Existing Lockdown Impacts Miners of Canada

The Existing Lockdown Impacts Miners of Canada

In recent past a number of miners had to turn off their machines just of uncertainty of operation and profit. And many others had their bitcoin backed loans liquidated. With an eye to becoming operationally lucrative after post-halving, many miners are relying on the bitcoin price.

Some privately owned mining operations court publicity and are facing crippling debts. On the other hand few are comfortable with the debt level and expecting the bitcoin price to go up long before 2021.

A Canadian mining operations such as Hut 8 has an benefit here because they have taken ‘’essential services’’ under the federal government’s COVID-19 strategy and that is why they can continue working. But the case is seen fully opposite in Argentina where everything is locked down and no mining firm is active.

Hut 8 aims at keeping itself updated importing equipments from China but in importing there is some kind of delay for pandemic. The CEO of Hut 8, Andrew Kiguel, got resigned from the company for being opposed to bitcoin mining machines saying the world is grappling with now different supply chain issues like getting ventilators and masks right now.

A number of mining firms are also facing the problem because of lockdown issue. Another bar is working to long time planning is the high cost of machines and expensive moving operations. In this situation it is expected that medium and small miners could disappear. That is why Hut 8 applied for an Emergency Wage Subsidy from the Canadian Government.

Common Impact

On the off chance, bitcoin mining can remain lucrative in their respective jurisdictions and undoubtedly governments have an impact on this. Those regions where there are robust mining companies have supportive regulatory environments like in China and Russia.

Like if BitPatagonia manages to get and operatenew hardware in Argentina before the halving, local operating costs will still impact on profitability. The wavering fiat exchange rate and global condition are playing significant role in the strength of local currencies. Mining industries in Russia are also facing the same trouble of declining the value in local currency. They are thinking that if the price of Bitcoin goes down in dollars, it may be up in rubbles. These industries are studying opportunities for low cost electricity in other parts of the world. Volatility in crypto and traditional currency markets may affect even more loans in coming months.

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