Crypto mining companies in China are moving to Nordic countries such as Sweden and Norway for cheaper electricity to earn higher mining rewards. Mining in the Nordic region seems not only to be an attractive destination for earning higher rewards, but also the environmental benefits associated with mining in the country. For instance, Norway boasts of having electricity that is almost carbon-free, consisting mostly of hydro, nuclear, and wind power.
Chinese Miners Plans Relocating to Nordic Region
In 2020, Chinese miners reported power cuts in some of the regions, causing hamperings in crypto mining. With the recent price surge and regulatory concerns, Chinese miners are now planning to move towards the Nordic region amid regulatory concerns and higher electricity costs in the country
Philip Salter, head of operations at Hong Kong-based Genesis Mining Ltd. said to Bloomberg on the lucrative opportunities of Bitcoin mining in Sweden:
“There is a very important strategic shift away from mining in China to mining in western countries like Sweden as Bitcoin investors become more public and want more stability and critical safety. It is one of the biggest developments in Bitcoin mining to look out for.”
In 2020, Norway had the cheapest electricity cost for industrial users among the 30 member-nations in the International Energy Agency.
Besides, the Nordic region usually comes with Bitcoin-friendly regulations and that becomes significantly important for protecting the cryptocurrency from political attacks.
China Currently Dominates Global Cryptocurrency Mining
The hashrate in Bitcoin mining has steadily increased. With the recent Bitcoin halving from May 2020, miners’ rewards have also cut off by half to maintain the scarcity of the cryptocurrency. Hence, cheaper electricity becomes a key concern for cryptocurrency miners to earn higher rewards with lower investments.
China currently holds a considerable share of global dominance in cryptocurrency mining. In fact, both Bitcoin and Ethereum are termed as Chinese-controlled cryptocurrencies within the industry due to the country holding a large percentage of BTC and ETH hash rate.