No Electricity Subsidy For Bitcoin Mining Farms In Norway– On Nov. 21, Aftenposten, which is Norway’s largest printed newspaper reported that Norway is going to end power subsidies for Bitcoin (BTC) mining services.
Till now, mining industries paid a low rate of 0.48 øre ($0.05) per kilowatt with regards to other power-intensive businesses. But currently, this rate will increase to 16.58 øre per kilowatt as of January 2019, after a change to the state budget agreement. Lars Haltbrekken, a vocal parliamentary representative for the Socialist Left Party (SV) is cited as unequivocally supporting the activity, arguing:
“Norway cannot continue to provide huge tax incentives for the most dirty form of cryptocurrency output […] [Bitcoin] requires a lot of energy and generates large greenhouse gas emissions globally.”
At the beginning of this month, Forbes detailed, with the presently privileged power subsidies, Norwegian farms can mine Bitcoin at a normal expense of $7,700 per coin, as indicated by information from Northern Bitcoin, a German-listed company in Norway that mines cryptocurrencies.
Strong Criticism For Government’s Move
No Electricity Subsidy For Bitcoin Mining Farms In Norway-ICT Norway, the local industry interest group has criticized the government decision strongly, Aftenposten reported. Roger Schjerva who is the chief ICT economist has supposedly issued a sharp-conditioned explanation, challenging:
“This is shocking! [To change] framework conditions without discussion, consultation or dialogue with the industry. Norway scores high on rankings of political stability and predictable framework conditions, but now the government is playing a gambling role with its credibility.”
Some Within The Local Blockchain Industry, Agree With The Government’s Move
No Electricity Subsidy For Bitcoin Mining Farms In Norway– Within blockchain industry itself, some have accepted the government’s move. Aftenposten refers to Jon Ramvi, CEO of Oslo-based blockchain warning group Blockchangers, as saying that “less mining in Norway will reduce the prices of electricity for companies and people residing in Norway, meaning that we reap the benefits of these resources locally instead of giving it away to Bitcoin miners.”
“more miners in the Bitcoin network does not make it faster or scale better. The only function of more miners is securing the network further,” contending that the network of BTC has been “extremely secure” for “over a year,” evacuating the need to motivate more miners.
Big guns in the business are still making revenue whereas small miners are struggling
“big guns” in the business are still making gains from Bitcoin mining. Whereas since this September, smaller miners paying retail power costs moved towards negative income for the first time as the expenses of power increases.
-A new report from weekly crypto outlet Diar