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Chinese miners look towards Scandinavia

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Chinese miners look towards Scandinavia

Chinese miners look towards Scandinavia
CONTENT

  • Sweden and Norway may become new cryptomining oases

  • Chinese miners are looking for other regions to open mining farms

  • Russia could also become the capital of cryptomining

International consortium of news organizations developing transparency standards.

Sweden and Norway could become new oases for bitcoin miners. Low electricity prices and arctic climate attract Chinese cryptocurrency miners.

Chinese miners look towards Scandinavia

Nowhere cheaper: the cost of electricity in Scandinavia has fallen sharply

Scandinavian countries such as Sweden and Norway may become new hubs for cryptocurrency mining, as the cost of electricity in this region is significantly lower than in Europe and China. This is largely due to the special climatic conditions..

In 2020, it was particularly rainy in these countries, which led to a rise in water levels in rivers. This led to a surplus of generated electricity and a drop in prices for it. Representatives of power generating companies report super profits and state that they managed to triple their profits compared to 2019.

“These prices are among the lowest in the world, excluding fees and taxes. This summer we saw low levels recorded for such a long time, ”said Thor Reyer Lilleholt, Head of Research, Wattsight AS.

According to the electricity producers themselves, they have special advantages that may be of interest to institutional and large public investors. The fact is that power plants practically do not use solid fuels to generate electricity, which means they reduce carbon dioxide emissions. The generated energy is environmentally friendly.

Chinese miners look towards Scandinavia

“There is a very important strategic shift from mining in China to mining in Western countries such as Sweden. Bitcoin investors are becoming more public and want more stability and critical security. This is one of the most significant achievements in bitcoin mining, which is worth paying attention to, “commented Philip Salter of Cenesis Mining..

The cost of electricity can be a decisive factor when choosing a region for creating mining farms. It is known that bitcoin mining requires serious computing power, which requires serious energy consumption, and after the May halving, the reward for the mined block was halved.

Today, China, Mongolia and Kazakhstan remain the main regions for mining cryptocurrency..

China is “tightening the screws” for bitcoin miners

Chinese miners have been looking for an alternative platform for mining bitcoins since the country’s government imposed severe restrictions.

Initially, miners lost access to banking services. This was previously reported by the famous Chinese journalist Colin Wu.

“Due to the government’s nationwide policy to block [bank] cards, crypto investors prefer not to exchange Chinese yuan. Nevertheless, miners must pay for the electricity of the mining farms by exchanging the mined BTC / ETH into yuan, “Wu wrote on his page..

Then the Chinese government decided to completely disconnect the miners from electricity in order to save money. Several miners reported that Baoshan power plants in Yunnan province were ordered to cut off electricity to miners.

Chinese miners look towards Scandinavia

This behavior of the authorities is forcing Chinese miners to look for more suitable regions for mining. It has been repeatedly suggested that the United States, Kazakhstan, Russia, and now also the Scandinavian countries can become cryptomining oases..

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