Bitcoin miners find the Nordic countries a profitable opportunity to increase their revenues due to a drop in electricity prices at the cheapest levels than any other known crypto mining site.
Bitcoin miners were able to find ‘lucrative’ opportunities in Norway and Sweden
According to a Bloomberg reportThe Nordic region, especially Norway and Sweden, has experienced mild weather for the past 20 years, which has contributed to higher production of hydropower plants.
Because the long-lasting weather trend has been living in the region for several years, it somehow helps to leave the area overrun with generating capacity, keeping prices “ close to zero for an extended period of time, ” Bloomberg also adds. that average prices so far this year are “about one third of those in Germany”, which is considered the largest energy market in Europe.
Tor Reier Lilleholt, head of analysis at Norwegian consultant Wattsight AS, told Bloomberg:
These prices are among the lowest you can find in the world if you don’t factor in fees and taxes. What we saw this summer was that the low levels were recorded for such a long time.
Traditional crypto mining hotspots are based in China, Kazakhstan and Canada, but the dynamics could turn around, says Bloomberg, which also coincides with the current crypto bull run. Norway is also a well-known country for lower electricity prices for industrial users and non-households in the European Union (EU).
Carbon-free electricity in the Nordic region
But lower prices in the Nordic region are not only attractive bait for crypto miners, as electricity in these countries is almost carbon-free (a combination of hydro, nuclear and wind energy), in line with current environmental policy trends around the world. world.
The article further explains the technical aspect that crypto miners in the Nordic region could favor due to the lower prices:
The cost of power is about to become even more important to miners. The hash rate, the amount of calculations required to produce each coin, is steadily increasing. And in May, miners’ rewards were cut through what is called a halving, a reduction in the number of tokens they receive as a way to conserve scarcity.
Tyler Page, business development manager at Bitfury, commented on the spike in the importance of bitcoin mining in Norway:
We have seen a notable rise in investor interest in bitcoin mining opportunities in Norway. This year’s energy prices were particularly low as bitcoin prices soared.
What do you think of the Nordic region as an attractive hotspot for crypto miners? Let us know in the comments below.
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