While the world is eyeing Bitcoin some countries are still against Bitcoin mining which is the only surviving factor for Bitcoin. The global issue is getting more complex as Bitcoin surges to a new ATH of $107K today and demand is going to rise in the future. Moreover, coming back to the issue Bitcoin mining difficulty has been driven by multiple factors, including an increase in network hash rate and big bulls adding Bitcoin as a strategic reserve and raising the Bitcoin demand.
British Columbia’s Ongoing Mining Ban
British Columbia (B.C.) is sticking to its ban on new Bitcoin mining until December 2025, even though Vancouver’s City Council passed a motion to become a “Bitcoin-friendly city.” The ban started in December 2022 to save energy for clean projects. Conifex Timber, a company planning to mine Bitcoin, challenged the ban in court, but the B.C. Supreme Court backed the decision in early 2024.
The province’s largest electricity utility, BC Hydro, generates over 90% of its power from hydroelectric sources. Vancouver’s motion, introduced by Mayor Ken Sim, highlights Bitcoin’s financial benefits but has no impact on mining regulation, as electricity falls under provincial jurisdiction. The province has been working on a permanent crypto-mining policy.
Earlier this year, B.C. passed an updated version of the Energy Statutes Amendment Act, which gives the provincial government direct authority to regulate electricity for crypto mining, bypassing the BC Utilities Commission. This move came after BC Hydro temporarily suspended Bitcoin mining connections to the provincial grid.
Regulations on Check
The legal challenge from Conifex Timber argued that the ban was discriminatory, but the provincial judge disagreed. This case raises questions about whether other industries, like AI or Liquified Natural Gas, might face similar energy regulations due to their high energy use and limited economic benefits, as suggested by the Green Party during the legislative debate.
B.C.’s stance on Bitcoin mining mirrors other regions. For example, New York State has a mining moratorium with exceptions for renewable energy, while some states, like Arkansas and Montana, have passed bills protecting Bitcoin miners from discrimination. Pennsylvania recently lifted its mining ban to focus on energy conservation bills.
On the flip side
Bitcoin (BTC) mining profitability improved in December, with the hashprice, a measure of daily earnings, increasing by 5% compared to the end of November, according to JPMorgan’s recent report. Bitcoin network hashrate rose 6% in December, averaging 773 exahashes per second (EH/s). Miners earned about $57,300 in daily block reward revenue per EH/s in the first two weeks, the highest in seven months but still 40% below pre-halving levels.
The combined hashrate of 14 U.S.-listed miners tracked by JPMorgan surged 94% year-to-date to 222 EH/s, making up 29% of the global network. However, their market cap fell 4%, or $1.5 billion, despite a 50% increase after the U.S. election. These miners are trading at about twice their share of the block reward opportunity.
