The Norwegian government is preparing to take a new step into a high-energy, remarkable cryptocurrency mining facility.
Norwegian labor government plans to temporarily ban the construction of new crypto mining data centres that use energy-intensive “proof of work” systems, according to Reuters. Work’s proof system is an important part of Bitcoin, the world’s largest cryptocurrency, and is used to protect your network.
If approved, the ban is expected to come into effect in the fall of 2025. The government’s main goal is to maintain the country’s electricity capacity for a more efficient and productive sector.
“Cryptocurrency mining consumes a lot of energy and contributes little in terms of employment and income to the local community,” Norwegian Minister of Digitalization said in a statement. Tung also noted that the move clearly demonstrates the government’s intention to limit Norway’s cryptocurrency mining as much as possible.
Norway was a favorite of Bitcoin miners looking for low-cost clean energy thanks to its abundant renewable hydropower. Companies like Cryptovault near Oslo operate data centers that consume up to 40 mW of electricity and recycle heat into dry wood and heated buildings.
However, despite the renewable energy infrastructure, the need for continuous and large-capacity energy from these mining facilities is an waste of resources that should be increasingly considered by regulators and directed towards more efficient sectors such as industry, heating, artificial intelligence data processing.
However, Norway ranks as the 11th most mined country with a proportional effect of 0.74% on the hash rate, a measure of bitcoin mining.
*This is not investment advice.