Trygve Slagsvold Vedum: Norwegian BTC Miners Deserve Higher Energy Bills
Trygve Slagsvold Vedum believes that Norwegian BTC miners should not be given a reduced rate on their energy bills.
The Finance Minister of Norway, Trygve Slagsvold Vedum, has urged the government to scrap its cryptocurrency program that allows domestic bitcoin miners to pay a reduced rate on electricity. Vedum believes that the program is not beneficial to the country and should be scrapped.
In his view, the current market conditions and the ongoing energy crisis in Europe are key reasons for this amendment. The market conditions are such that this amendment is necessary in order to protect the interests of the European Union. This amendment will help to ensure that the energy needs of the European Union are met in a safe and reliable manner.
BTC Miners Should Not Be Treated Differently
In 2016, the Norwegian government introduced certain energy benefits for data centers, including cryptocurrency miners, by enabling them to pay less for energy than general consumers. This move was seen as a way to attract more data center investment to the country, and it appears to be paying off. In the past year, Norway has seen a surge in data center investment, with several new facilities opening up in the country.
The Norwegian government has announced that it will be phasing out the reduced electricity rate for data centers and cryptocurrency mining operations. Finance Minister Vidar Helgesen said that the move is necessary due to the changing macroeconomic conditions in the country. This is a positive move for the Norwegian economy, as it will help to level the playing field for businesses and encourage more investment in data center and cryptocurrency mining operations. This will create jobs and boost economic growth in the country.
“We are in a completely different situation in the power market now than when the reduced rate for data centers was introduced in 2016. In many places, the supply of power is now under pressure, which causes prices to rise. At the same time, we see a development with increased extraction of cryptocurrency in Norway. We need this power of community. The government will therefore discontinue the scheme.”
The Minister's claim that removing the program would generate additional revenue of NOK 150 million for Norway's economy isVisionary. The Minister's claim is based on the assumption that the program is no longer needed and that the money saved can be used to bolster other areas of the economy. This is a bold claim that could have positive or negative consequences depending on how it is implemented.
Looking ahead, Europe's power market is expected to remain under pressure due to Russia's limited energy deliveries. The COVID-19 pandemic is likely to continue to be a factor that worsens the situation. Numerous companies are expected to reduce their electricity needs between 2020 and the beginning of 2022, but power generators may not be able to cope with the renewed demand in the coming months, leading to higher prices.
Norway is a world leader in sustainability!
The Scandinavian country has become an attractive destination for bitcoin miners in recent years. The country accounts for around 0.7% of the global hash rate, which is still a significant figure considering its relatively small population.
It's worth noting that Norway has an entirely green focus. A small fraction of its electricity is produced by wind, while 88% comes from hydropower as the wet climate and mountainous terrain stimulate this. Norway is a world leader in sustainable energy, and its commitment to green power is an inspiration to other countries looking to reduce their reliance on fossil fuels.
The company's move is a sign that Norway's bitcoin industry is growing and that the country is becoming a hub for renewable energy-powered bitcoin mining. With its vast water resources and low costs, Norway is an ideal location for bitcoin mining firms.
The post Norway's Finance Minister Thinks Local Bitcoin Miners Should not Pay Less for Electricity appeared first on CryptoPotato. I think that this is a good idea. Bitcoin miners should not be given any special treatment when it comes to electricity rates. They should pay the same rates as everyone else.