Energy Crysis Might Affect Crypto even more this Winter
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Currently, the global financial situation is not so bright. The banks raised interest rates, and many started to ask if the financial system would begin to break.
An energy producer from Quebec, Canada, one of the country's largest provinces, asked for permission from the Canadian government to pull the plug on crypto miners. Investors and users worldwide started to be concerned, and the inevitable question was asked:
Will other countries follow?
As the value of currencies worldwide falls against the US dollar, more people are turning to crypto to protect their purchasing power. Crypto adoption has obviously been highest in countries experiencing hyperinflation, for example, Turkey. However, when other currencies decline further against the dollar, this adoption could spread. This reason appeared to be one of the main that Quebec asked the Canadian government for permission to cut the cord to cryptocurrency miners.
Quebec's crypto miners currently consume about 270 megawatts of electricity yearly.
However, the most recent statistics show that Hydro Quebec produces over 40.000 megawatts annually. This means crypto miners use less than 1% of their annual output.
Still, the energy company claims that this allegedly disproportionate energy use could threaten the province's power grid when winter comes around. Hydro Quebec is also concerned about the significant energy contracts it could have with crypto miners further in the future. Despite its surge in output.
In addition, the EU representatives recently stated that the member states must be ready to put crypto-asset mining enterprises
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