One of the obstacles to the extraction of cryptocurrencies is that it consumes a lot electricity. The Norwegian miners were spared this government spending through a scheme of electricity subsidies. However, this change is expected to arrive in 2019 as there are reports that this subsidy will be completely demolished.
The cryptocurrency mining companies in Norway are classified in the same category as conventional energy-intensive companies. To this end, they also pay a subsidized electricity bill of 0.48 hours per kilowatt hour. Considering that the ordinary expenses are about 16 hours per hour, this is equivalent to about 3% of the normal rates. However, these companies will be required to pay the full price starting from January 2019.
Protection of the environment
News from the Norwegian government plan for the scrap electricity Grants for the cryptocurrency mining industry have been reported by the International Business Times. Apparently, the government did not consult the crypto mining industry before doing the rest. To this end, the government did not bother to explain why it had come to the decision.
However, Lars Haltbrekken, a representative of the Norwegian legislature, made it clear that the decision may have been inspired by the environmental pollution on the run associated with the crypto mining.
Cryptocurrencies A disaster for the environment
Speaking to journalists of recent news, Haltbrekken said that the Norwegian government would not continue to facilitate the operations of the "dirtiest form of cryptographic output" – he was also eager to mention Bitcoin, the most extracted cryptocurrency, by name.
The research indicates that the increased appetite for the extraction of cryptocurrencies is a time-bomb for the environment. According to the research, mining cryptocurrencies use more energy than necessary to extract platinum or copper – in the case of Bitcoin it uses even more energy than is needed to extract gold. For example, the use of Bitcoin has only contributed to over 69 million tons of carbon dioxide in 2017 alone. It is estimated that around 17 megajoules were needed to extract only $ 1 of bitcoin – copper and platinum, d & On the other hand, requires only 4 megajoules for the same value.
Global temperatures could increase up to 20 C by 2033 if Bitcoin and other cryptocurrencies are adopted at constant rates. To this end, serious discussions are taking place on this side effect of the extraction and use of cryptocurrency: the fact that more and more governments prohibit cryptocurrencies does not help this cause.
Consequences for the Norwegian encrypted mining industry
The mining industry of the Norwegian cryptocurrency was taken aback by this news. The main reason for concern is the astronomical prices they will have to pay in 2019 – their operating costs could increase up to 93%. Analysts are also worried that cryptocurrency investors who have been attracted to the Norwegian market may be frightened. It is also possible that the complications that will result from this change will also have repercussions on miners and cryptocurrency users in Denmark and Sweden.
The cryptocurrency mining industry is more competitive. Unfortunately for Norwegian miners, their position will soon be weakened by the end of existing electricity subsidies. The miners in the country will pay up to 93% more for their electricity bills arriving in 2019.