Norway Ends Electricity Subsidies For Bitcoin [BTC] Mining.

Norway Ends Electricity Subsidies For Bitcoin [BTC] Mining.

2018-11-23 | Selina Mathew

Norway Ends Electricity Subsidies For Bitcoin [BTC] Mining.

In line with a recent news report published by ‘Aftenposten,’ Norway has decided to finish its electricity subsidies for the Bitcoin [BTC] mining facilities.

Until now, crypto mining farms — comparative to other power-intensive industries — paid a lower rate of 0.05 USD per KW. This will however be now rising to around 2.159 USD per KW as from January 2019, following an associated amended to the state budget agreement. One vocal parliamentary representative for the Socialist Left Party [SV] named Lars Haltbrekken is quoted as advocating the action, arguing:

"Norway can't still offer vast tax incentives for the foremost dirty form of cryptocurrency output [...] [Bitcoin] needs alot of energy and generates massive green house gas emissions globally."

In line with a recent Forbes report published earlier this month, with the presently advantageous electricity subsidies, Norwegian farms are able to mine Bitcoin [BTC] at a nominal price of $7,700 USD per coin, as per the information from Northern Bitcoin, a German-listed firm that mines crypto’s in Norway.

Aftenposten reports that the domestic Industry Interest Group [ICT] has responded with sturdy criticism of the govt action; chief ICT social economist named Roger Schjerva has reportedly issued a sharp-toned statement, protesting:

“This is shocking! [To change] framework conditions while not discussing, consulting or framing with the industry. Norway scores high on rankings of political stability and certain framework conditions, but now the govt is taking part as a gambling with its believability.”

However, there are still some within the native blockchain trade who broadly consider the government’s move. Aftenposten cites Jon Ramvi, chief executive officer of Oslo-based blockchain consultancy group Blockchangers, as stating that “less crypto mining in Norway can scale back the costs of electricity for firms and other people residing in Norway, that means that we reap the advantages of these resources domestically rather than giving it away to Bitcoin miners.”

Adding further Ramvi stated that "more miners within the Bitcoin network doesn't make it quicker or scale higher. The sole function of a lot of miners is securing the network further,” adding that the Bitcoin [BTC] network has been “extremely secure” for “over a year,” removing the requirements to incentivize additional miners.

A recent report from weekly crypto outlet Diar indicated that solely “big guns” within the trade are still earning some profits from the Bitcoin mining; smaller miners paying retail electricity costs shifted towards negative revenue for the primary time this Sep as the prices of electricity rises.

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