The cryptocurrency mining industry has proven to be profitable if it is done properly. That is, if the companies in charge of crypto mining are located near cheap electricity sources, and/or have cold temperatures during an important time of the year. Several mining enterprises are located in Iceland, Russia, and China, where electricity is cheap and the climate helps.
Now, Sweden and Norway are being selected by some mining businesses due to the fact that they offer low electricity prices (lower than the European average), stable political and economic conditions, and a cold weather.
Sweden and Norway, New Cryptocurrency Mining Sanctuaries
In order to mine one Bitcoin, companies need to spend between $1,400 and $,1800 in electricity. That’s an important sum that needs to be taken into account. At the same time, they need to take into account the employees they have, and other expenses that they may have to pay.
That’s why, companies are constantly searching places where to locate their business and reduce electricity costs. In Iceland, electricity costs €0,08 euros per kWh, below the European average of €0,11. Furthermore, Iceland has a good cold weather that helps cooling the mining installations.
But Norway and Sweden have been selected by some miners due to the fact that they have even cheaper electricity costs. In Sweden the price is €0,06 and in Norway €0,07 cents per kWh.
The Canadian mining group Hive, has decided to start mining Ethereum from Sweden. Another American firm known as Bitfury, started mining bitcoin from Norway. In the future more enterprises could start operating in these two Scandinavian countries.
Bitmain, one of the most important bitcoin mining companies on earth, is trying to search a new country where to settle its operations. The truth is that China is restricting the crypto mining activities because they consume an important part of electricity that should be used by industries and cities.
At the moment, Switzerland is one of the countries that have been chosen by Bitmain, but Norway and Sweden could be good options for the future. Another important aspect of these countries is that they have economic and political stability, reducing uncertainty, and bureaucratic and logistic costs.