The importance of constant and cheap electricity tariff has been brought to the fore, as Bitcoin miners in Sweeden and Norway seized the opportunity to mine more bitcoin thereby making more money.
Electricity tariff in Sweeden and Norway have been drastically reduced there compete with Canada, China and Kazakhstan where we have great miners of cryptocurrencies.
Traditional crypto mining hotspots are based in China, Kazakhstan, and Canada, but the dynamics could have a turnaround, says Bloomberg, which also coincides with the current crypto bull-run. Norway is also a well-known country for its lower electricity prices for industrial users and non-households in the European Union (EU).
According to a Bloomberg report, the Nordic region, specifically Norway and Sweden, has seen mild weather in the last 20 years, which helped boost production from hydroelectric plants.
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As the long-lasting weather trend has been alive in the region for several years, it’s helping in some way to leave the area awash in generation capacity, which keeps the prices close to zero “for extended periods,” Bloomberg details, which also adds that average prices saw so far this year “are about a third of those in Germany,” that is considered the biggest power market in Europe.
Tor Reier Lilleholt, head of analysis at Norwegian consultant Wattsight AS, told Bloomberg:
These prices are some of the lowest you can find in the world if you disregard fees and taxes. What we saw this summer was that the low levels registered over such a long time.
But lower prices in the Nordic region are not only an attractive bait for crypto miners, as the electricity in these countries is almost carbon-free (a combination of hydro, nuclear, and wind power), riding with the current environmental policies trends across the world.
The article explains further the technical aspect that could favour crypto miners in the Nordic region due to the lower prices:
The cost of power is poised to become even more significant for miners. The hash-rate, the amount of calculation needed to produce each coin, is steadily increasing. And in May, miners’ rewards were cut by a so-called halving, a reduction in the number of tokens they receive as a way to maintain scarcity.
Tyler Page, business development manager at Bitfury, commented on the spike in the interest of bitcoin mining in Norway:
We have seen a notable uptick in investor appetite for bitcoin mining opportunities in Norway. This year’s energy prices were particularly low as bitcoin prices have increased.
African countries can also borrow a leaf from the teaming youths in Sweeden and Norway who capitalized on the cheap electricity tariff in their countries to make more money in Bitcoin mining.
