According to a recent Arcane Research research, Norway has emerged as a desirable location for the bitcoin mining business. Not only does the country generate around 1% of the global hash rate, but it is also totally fueled by renewable energy. Norway, according to recent research by Arcane Research, has become a desirable location for bitcoin mining. The country not only produces around 1% of the world’s hash rate, but it is also totally fueled by renewable energy.
When Norway is referenced in the context of bitcoin, it is frequently stressed bitcoin’s high energy usage. As in the well-known Forbes Last May, bitcoin miners consumed more electricity than some smaller countries, including Norway.
However, within its boundaries, the country now hosts a considerable share of bitcoin’s overall hash power. While 0.77 percent may not seem like much, it is a significant portion given Norway’s tiny size and population.
CryptoVault and arcane Green Data are among the smaller local players mentioned in the report, which was released on Thursday. Northern Data, BitDeer, Bitzero, and COWA are just a few of the big names in the industry.
Norway’s acceptance of political stability and regulatory parameters is one of the reasons for this. The country is ranked 9th in the World Bank’s Ease of Doing Business Index and offers low electricity tariffs to industrialists, including bitcoin miners.
Another reason for Norway’s popularity is the country’s low electricity bills, which are among the lowest in Europe. For the past five years, prices have ranged from $0.03 to $0.05 per kWh across the country, with prices as low as $0.01 per kWh in 2020.
The precipitation was very heavy that year, swiftly filling Norway’s hydropower reservoirs. After all, the country’s hilly terrain and wet climate allow it to rely on hydroelectricity for 88 percent of its energy. Norway is virtually entirely green, with only 10% of its energy coming from wind.
This is significant for bitcoin miners, who have received a great deal of public and media attention for their problematic carbon footprint. In fact, Ripple’s co-founders are currently working with Greenpeace to support an environmental campaign to expose the proof of work consent mechanism, which allows the mining industry to code for bitcoin.
However, Norway’s popularity demonstrates that energy concerns about bitcoin may be overblown. The Bitcoin Mining Council reported in 2021 that renewables were already powering over 50% of bitcoin’s hash rate.