Bitcoin faces great uncertainty because the trade war between the United States and Canada can disrupt mining operations. Doug Ford, Prime Minister of Ontario, has warned that Canada might impose a retaliatory tariff on electricity exports to the northern US states – or even completely reduce power flow – in response to the definitions made by US President Donald Trump.
It can reach the hostility of the United States and Nada with the last bitcoin
Ford’s comments, which were taken in the video statement, highlighted the intensity of possible measures: “If he wants to destroy our families, I am completely following everything.” The situation, which can affect up to 1.5 million customers in New York, Michigan and Minnesota, are now concerned about the impact of ripples on bitcoin mining.
Michael Malone, founder and CEO of Incyt, presented, analysis Via X, which indicates that miners in the United States in the northeast are facing a great danger in the event of reducing electricity exports or stopping electricity exports. According to Maloney, more than 300 megawatts (and perhaps up to 500 megawatts) of bitcoin mining capacity along the border that reaches New York and Cananga, which represents “between 2.5 % and 5 % of the global retail”.
“This news can be a major impact on $ BTC and #bitcoin as a whole”, referring to the low -cost energy in the area where “Prime for Bitco Miners” was. Share data from the independent system operator in New York (NYISO) showing energy prices about $ 0.037 per kilowatt hour in some areas-which helped support bitcoin mining operations on a large scale. However, these prices have already started to rise by about 30 % in the “Day-AEGHEAD” expectations, making pressure on miners depend on cheap electricity.
Malone noted that if up to 1.5 million electricity users in New York, Michigan and Minnesota Canadian energy, they will turn into local networks: “If users are cut 1.5 million, they will need to hit the New York Network. It is winter and cold, so let’s estimate 1000 kWh per month. This is the deficiency of the request about 2000 MW/hour.”
New York’s power generation is about 17 GW, which means that it will need to add about 2 GW (12 % increase) to meet the demand. Malone asserts that this would push prices up: “This will lead to a 40 % -70 % high energy load prices, which raised the price to 0.075 km/hour. The demand prices will increase significantly, and the costs of everyone will pay in the north of 0.12 km/hour. The affected persons will witness 1.5 meters. Energy costs are 4-5X greater than usual. This will destroy them.”
The main anxiety is whether the current fleet of bitcoin mining machines can remain profitable at high energy prices. Malone referred to data from Asicminervalue.com, with highlighting that the devices that only have the efficiency of “better than 16.5 J/th” may remain profit Shame if they suddenly are 25 % more expensive due to definitions. “
Maluni also noted that although miners may find a short -term mitigation through response programs, costs and definitions are likely to make such programs not sustainable in the long run. If the facilities are closed or resolved, the immediate result may be a significant decrease in Bitcoin: “Retail loss will slow down the network in the short term. The difficulty will adjust and install the ban.”
However, the deepest repercussions can affect the entire American mining industry, including the main operations in Texas and other states that may also face a higher tariff. Malneyy expects that “harshs that were cut off to other judicial states – are now a little assaulted with the United States.” He specifically referred to Canadian miners and Chinese mining operators who may benefit from newly available mining devices and search for cheaper electricity elsewhere.
For Malneyy, the lesson is clear: “Commercial Wars (including definitions, revenge definitions, and manipulation of facilities services) is bad for business. There is no doubt that bitcoin mining is a big job.”
At the time of the press, BTC was traded at $ 87,854.
Distinctive image created with Dall.e, Chart from TradingView.com
