Norway May Soon Ban Bitcoin Mining! What Will Be the Impact on BTC, and How Much Mining is Done in Norway? Here Are the Answers

Question

The Norwegian government is preparing to take a new step towards cryptocurrency mining facilities that draw attention due to their high energy consumption.

According to a report by Reuters, Norway's Labour Party government plans to temporarily ban the establishment of new cryptocurrency mining data centers that use energy-intensive "proof-of-work" systems. The Proof of Work system is currently a significant part of the world's largest cryptocurrency, Bitcoin, and network security is maintained through this system.

If approved, the ban is expected to come into effect in the fall of 2025. The government's main aim is to preserve the country's electricity capacity for more efficient and productive sectors.

Norwegian Minister of Digitalization Karianne Tung stated in her announcement, "Cryptocurrency mining consumes a lot of energy and contributes very little to local communities in terms of employment or income." Tung also noted that this step is a clear indication of the government's intention to limit cryptocurrency mining in Norway as much as possible.

Norway has long been a favorite for Bitcoin miners seeking low-cost and clean energy due to its abundant renewable hydroelectric resources. Companies like Kryptovault, operating near Oslo, run data centers consuming up to 40 MW of power and recycle the generated heat for wood drying or building heating.

However, despite the renewable energy infrastructure, the continuous and high-capacity energy demand of these mining facilities is increasingly being regarded by regulators as a waste of resources that should be redirected to more efficient areas such as industry, heating, or artificial intelligence data processing.

However, Norway only has a proportional impact of 0.74% in terms of hashrate, which is a measure of Bitcoin mining. In terms of ranking, it is the 11th country with the most mining.

*This is not investment advice.

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