Following the violent plunge of the cryptocurrency market late this year, Norway Bitcoin miners might be set for more bad news after the Norwegian government cut off its electricity subsidy, to drive out the most obstinate of crypto miners into neighbouring country, Sweden.
The government of Norway has moved swiftly in proposing making a decision concerning the consequences the cryptocurrency mining industry could have on its country. The decision which saw a fairly rushed decision that took proponents of Norwegian crypto mining industry by surprise has been revealed to take effect by January 2019; as the government plans to implement full tax payments for cryptocurrency miners in the country.
Norway before now, along with Scandinavian neighbours Sweden has been a hotspot for cryptocurrency miners, as the European country offers a varying number of ideal factors for prospective miners such as its climate and most importantly its very cheap electricity tariffs. China which had in previous years hosted more than 70 percent of the world’s digital currency miners started to close down on its miners early this year after the densely populated country began to worry over the greenhouse problems posed by the mining industry. Norway and Sweden, therefore automatically became a happy alternative and had attracted miners across the continent ever since.
This, however, could be about where it all ends, after the Norwegian government cut off its electricity subsidy for cryptocurrency mining powerhouses completely from a meagre 0.48 Norwegian Krone (5.6 cents) per kilowatt-hour to 16.58 Krone (roughly $2); a staggering 3400 percent increase. Like China, the government became alarmed at the rate at which the mining industry was warming up its climate and the potential harm to its country in a few years. Lars Haltbrekken, a Norwegian parliamentary representative, said in a report by the country’s biggest newspaper, Aftenposten:
“Norway cannot continue to provide huge tax incentives for the dirtiest form of cryptographic output like bitcoin. It requires a lot of energy and generates large greenhouse gas emissions globally.”
Sweden the Only Party Set to Benefit
The latest policy would see a lot of drastic changes coming about in Norway as the exorbitant increase in tariffs only means a lot of miners could be operating at a loss if they persist in the country. The development of the cryptocurrency industry in Norway is also set to take a huge hit, in what is evident in the world’s biggest Bitcoin miners, Bitmain, bringing their planned developments in the country to a screeching halt. The only logical alternative for miners would be a transfer of working environment to Sweden which has similar rates to Norway’s former at 0.5 Swedish Krone.
While Sweden has shown a track record of being friendly to the cryptocurrency space in the past, it is no guarantee that it too could take a decision like its neighbours, if not soon.