The small Canadian city of Ocean Falls, which is located in the province of British Columbia, was once a factory center with a population of 5,000. Currently, there are about 100 residents in the city, and most of the enterprises have moved their businesses to other regions. The growing popularity of the mining industry can correct the situation.
Miners see themselves as a soldier of fortune. They wander the world in search of suitable places to earn money. For a long time, regions of China such as Inner Mongolia and Xinjiang have been global mining hubs thanks to the abundance of coal and cheap electricity. However, doing this business in China is becoming more and more difficult, and many miners are looking towards the desert regions of North America with their cold weather and abundant hydroelectric power. In the past few months, there has been a real invasion of miners in such areas.
For example, the authorities of the village of Venatchi in Washington state reported that several dozen mining farms are eyeing this area. Chinese ASIC miner manufacturer Bitmain intends to open a mining center in Rockdale, Texas.
Some local residents welcome the arrival of miners, while others are worried about the opening prospects. In the tiny Canadian town of Ocean Falls, this is exactly the situation. It was once a fairly large factory town with a population of 5,000, but now there are no more than 100 inhabitants left in it. Many businesses - from casinos to bottled water plants - have tried to gain a foothold in the city, but have failed. This is partly due to the remoteness of the place. Ocean Falls can be reached by boat or plane. In winter, a strong wind blows, discouraging travelers. It rains all year round.
The local dam is still capable of generating 13 MW of electricity. The small number of inhabitants in neighboring towns means that more than two-thirds of the energy is not being used. As a result, the local private power plant Boralex began to receive applications from bitcoin miners interested in working in Ocean Falls.
Brent Keyes, director of manufacturing and operations for Boralex in British Columbia, told Bloomberg that he is working with entrepreneur Kevin Day, intending to turn one floor of an old pulp mill in Ocean Falls into a mining farm.
Case has entered into an agreement with Day and Ocean Falls Blockchain, according to which Boralex will sell electricity at a significant discount for five years. The mining startup told investors that it will buy 6 MW of electricity by the end of the year. Contractors and builders quickly became a topic of discussion in the city, as they settled in a local guesthouse and spent money in small shops.
Nevertheless, Ocean Falls Blockchain faces certain challenges. In February, the company approached investors based on the expected Bitcoin price of $ 11,000. However, this year's price downturn casts doubt on such calculations.
In addition, Boralex is unable to negotiate a price with local utilities. There are fears that electricity prices will rise, forcing the Ocean Falls Blockchain to leave the city.
Meanwhile, some locals are just happy that people are coming to Ocean Falls with plans for the future. Others, remembering how flourishing the city has been in past decades, are relieved to see the turbines still spinning - no matter what project.
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