Bitcoin miners see the Nordic countries as a profitable opportunity to increase their income as electricity prices drop at the cheapest levels than any other known place for crypto mining.
Bitcoin miners could find “lucrative” opportunities in Norway and Sweden
According to a Bloomberg report, the Nordic region, particularly Norway and Sweden, has experienced mild weather for the past 20 years, which has helped boost production from hydroelectric plants.
Since the long-running weather trend in the area has been alive for several years, it is in some ways helping to keep the area’s generating capacity overcrowded, keeping prices close to zero “for extended periods”, according to Bloomberg, according to Average Prices so far this one Year “are around a third of the prices in Germany”, the largest electricity market in Europe.
Tor Reier Lilleholt, Head of Analysis at Norwegian consultant Wattsight AS, told Bloomberg:
These prices are some of the lowest in the world if you don’t factor in fees and taxes. What we saw this summer was that the low levels were recorded over such a long period of time.
Traditional crypto mining hotspots are in China, Kazakhstan and Canada, but the dynamics could change, says Bloomberg, which also coincides with the current crypto bull run. Norway is also a well-known country for its lower electricity prices for commercial users and non-households in the European Union (EU).
CO2-free electricity in the Nordic region
Lower prices in the Nordic region aren’t just attractive bait for crypto miners, however, as the electricity in these countries is virtually carbon-free (a combination of hydro, nuclear, and wind power), in line with current environmental trends across the world .
The article further explains the technical aspect that Crypto Miners in the Nordic region could favor due to the lower prices:
Electricity costs are likely to become even more significant for miners. The hash rate, the computational effort required to produce each coin, is steadily increasing. And in May, miners’ rewards were cut by something called a halving, a decrease in the amount of tokens they receive to keep the scarcity going.
Tyler Page, Business Development Manager at Bitfury, commented on the surge in the interest of Bitcoin mining in Norway:
We have seen a significant increase in investor appetite for bitcoin mining opportunities in Norway. This year’s energy prices have been particularly low as Bitcoin prices have risen.
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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