Mining operations for cryptocurrencies are springing up all over the world.

Power-hungry mining farm businesses are drawn to regions that offer low electricity costs, maximising profits.

There is a problem with this. There is only so much electricity to go around. Places like Washington State County and Plattsburgh, New York, have recently stated intentions to curtail new mining farm development due to the drain on the power grid. The enormous demands of hundreds or thousands of power-hungry ASICs running 24/7 simply can not be met in some of these communities.

Conversely, some communities are welcoming miners with open arms. Affordable electricity from hydro-energy in Quebec, Canada is enticing significant investment in cryptocurrency mining there, although there is some disagreement over whether this will have a net beneficial effect on the economy due to the high power costs. In Alberta, Canada, a traditional oil and gas community is welcoming digital miners to use their natural gas-powered electricity to diversify the economy. This one mining operation will generate more than 100 temporary construction jobs and further down the road, once running, long-term jobs for "electricians, general labourers, system technicians, and security staff" for more than 40 employees (source).

Could this create a cyclical pattern of benefits?

This is still the nascent, and sometimes awkward stage of a new industry. It will experience growing pains and difficulties with infrastructure and efficiency. However, the economic benefits, both in the short term with construction and design, and in the long term, with on-going jobs maintaining mining businesses, will be significant. Communities that have the capacity to welcome this new industry could see benefits that will provide sustainable employment and revenues that will prop up local economies.

In particular, regions that move to develop renewable energy generation could see the greatest gains. Energy generation projects will create cycles of economic benefit, beginning with the initial building stages, then drawing in sustainable employment in the renewable energy industry, followed by development of the mining industry and its resulting long-term employment. This is a cycle that works best when the energy provided in the first place is renewable and therefore, unlimited, affordable, and clean.

Cryptocurrency mining operations necessitate the development of renewable energy generation in a way that other industries have not demanded. This young industry may spur on enormous economic growth in both renewable energy and cryptocurrency innovation. Demand from this industry may be the catalyst to really getting the renewable energy sector growing. Necessity is, indeed, the mother of invention.

source:

http://www.cbc.ca/news/canada/calgary/bitcoin-mining-medicine-hat-crytocurrency-electricity-deal-hut-8-1.4584257

image source:

http://www.cbc.ca/news/canada/hamilton/hamilton-cryptocurrency-1.4526877

*This is not professional trading advice - it's just my opinion!

If you found this article helpful or interesting, please consider donating to...

BTC: 1FadQUp6PxQcbt1sicLRDE3f7v2kQPpVBq

ETH: 0x3edfc32dd4d8daf4ec31663d7b90911127b35d9f

VTC: VeipQV2i8bzcecTo8MghDrb63L6MhmjRWM

Tips are greatly appreciated!

If you're interested in trading cryptocurrencies, check out Binance by using my referral link and sign up today!

https://www.binance.com/?ref=16702963