A Bitcoin (BTC) green is more expensive ! – The cost of cryptocurrency mining in Norway could increase if the country’s finance minister, Trygve Slagsvold Vedum, manages to remove this tax reduction for miners.
Electricity tax and cryptocurrency mining in Norway: back to normal?
The context has changed. In an announcement on October 6, the Norwegian Minister of Finance, Trygve Slagsvold Vedumhas issued a proposal relating to a phasing out of the reduced rate on the tax on electricity, granted to data centres. Such a measure could increase state revenues by $14 million, according to the minister.
This reduced rate has benefited cryptocurrency miners in particular since 2016. However, Trygve Slagsvold Vedum mentions “ a completely different situation in the electricity market today “. He points to tight supply in many regions that is driving up prices.
The Minister also justifies the need to put an end to this preferential measure. He refers to the development of cryptocurrency mining in Norway, which thus monopolizes part of the electricity of which ” the community ” nevertheless needs.
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Sustainable Bitcoin Mining: Green Is Appreciated, But One Political Party Sees Red
According to a report byArcane Research dating from 1er April this year, miners in the country contribute 0.77% to Bitcoin’s global hash rate. These companies are powered by a electricity from 100% renewable sources.
‘Green’ bitcoin mining may be flourishing in Norwaybut the voices now rising against cryptocurrency mining in the country could end this growth early.
Among the initiatives that elected officials have taken against the development of the sector is that of the Red Party of the Country. He had presented a proposed ban on cryptocurrency mining, which the Norwegian Parliament nevertheless rejected last May. Despite this victory, miners should expect further legislative and regulatory shocks in the future.
The legislation and regulations mining cryptocurrencies generally take into account the benefits that the sector brings to the economy of the country on the one hand, and on the other hand, the nuisances it causes. The miners in Norway, like those from other walks of life, have their defenders and their detractors who accuse them of putting the electricity network under pressure, or even to be just too loud.
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