Norway ceased the allocation of subsidies for electricity for miners bitcoin (BTC). This was reported by the largest newspaper of the country Aftenposten.
Up to this point, miners are paid for the electricity at a reduced rate of 0.48 era (or $0.05 USD) per kilowatt. Now the authorities have decided to raise the rate to 16.58 era ($1,94) per kilowatt. The changes will take effect from January next year. The state budget had been amended accordingly.
“Norway cannot continue to give such huge tax breaks the most dirty form of production cryptocurrency […] mining bitcoin requires a lot of energy and produces large emissions of greenhouse gases” — commented the decision of the authorities the representative of the Parliament from the Socialist left party of Norway and the famous Norwegian ecologist Lars, Haltbrekken (Lars Haltbrekken).
According to a recent Forbes estimate, subsidies allowed to the Norwegian miners to mine one bitcoin, spending approximately $7700 for electricity. In some regions and individual enterprises, in particular, on the Lefdal Mine one coin you can mine and is for $2700, while, as, for example, in Australia the figure comes to $10,000.
Interested groups cryptocurrency industry Norway has criticized the decision of the Parliament. So a group ICT Norway, advocating for technological development of the country, responded to the abolition of subsidies edgy statement.
“It’s shocking. A change in the conditions without discussion, consultation or dialogue with the industry. Norway is among the most politically stable countries with predictable legal environment, but now the government uses its authority, playing a game of chance”, — said the chief economist of ICT Serve Roger (Roger Schjerva).
However, in addition to critics, in the cryptocurrency industry, there were also supporters of the decision of the authorities. These include the head of the Advisory group on the blockchain from Oslo Blockchangers. He believes that the elimination of subsidies will reduce the price of electricity in the country, which would entail only benefits. Also, according to proponents of the decision, a large number of miners in the Bitcoin network doesn’t bring additional positive effects, in addition to the growth level of security. However, recently security is already at the highest level.
We will remind that last year the mining boom has happened in Russia, and in some regions mining cryptocurrency cost “farmers” is very cheap. Until now, no law regulating this activity in the country had been adopted, although the taxation of the miners was discussed. Recently it became known that the draft law “On digital of financial assets” disappeared of the concept of “mining” and “bitcoin”. The bill now awaits second reading in the state Duma.