Concerned about the projected increase in electricity demand, the Swedish energy minister stated that the Swedish government may withdraw its support for crypto mining.
According to a Bloomberg report on July 17, Sweden Energy Minister Khashayar Farmanbarin other industries forecasts of increasing energy needs.Swedish government against crypto miners can change their attitudes stated. Sweden was among the lowest-cost alternatives for miners in Europe, with cheap green electricity thanks to renewable energy sources.
Farmanbar, In an interview with Bloombergof Sweden two options like steel mills job creation projects can supply electricity or Bitcoin miners He said that they can increase capacity for increasing energy needs. Minister Farmanbar added that this is not a competition. The minister, in an interview:
To be honest, we need energy for more useful things than Bitcoin.
said.
Experts believe that Farmanbar’s comments are in Sweden, which is home to Europe’s largest Bitcoin mining industry, as of now. to approach the miners more distantly They said it might cause. According to Bloomberg, the government from increasing energy needs concerned, at the end of June, government officials announced that crypto miners from the Swedish Energy Agency monitor energy consumption He wanted them to find their way.
If Sweden maintains its current policies, according to the energy demand forecast 2050 energy consumption in to 300 terawatts/hour will come out. Thanks to this government’s energy forecast, huge hydroelectric power plants and giant wind farms cheapest in the world by miners of Sweden, one of the electricity providers raises the possibility that its attractiveness will be reduced.
In addition, according to the news, Minister Farmanbar stop mining like for what measures to express their debt avoided but one of the options discussed, according to Bloomberg, tangible benefits to sectors priority new power users to the grid change access priority may contain.
Another alternative found in the media is that, regardless of their use, currently all applicable to data centers the one which… limiting the scope of preferential tax treatment it could be. Senior consultant to industry group Swedenergy Erik Thornstrom In an interview, such incentives does not aim to attract crypto minersyour main purpose Microsoft Corp. or MetaPlatform Inc. said to attract multinational data-rich companies such as Data centers today use a few percent of Sweden’s total energy, according to Thornstrom, and the energy used for mining is equivalent to that. a small part includes but energy demand from miners 2040 until the year can increase eight times.
According to information from Bloomberg Swedish regulatorsdescribed crypto assets as a threat to the climate transition and in Germany, Spain and Norway with the support of parliamentarians European Union-wide mining ban he called.
According to the latest data from Cambridge University’s Center for Alternative Finance, Sweden’s share of Bitcoin mining ever increasing is seen. According to Cambridge data, fireplace global production in 0.8%It was undertaken by Swedish miners. Germany and Spain on paper Although it seems to have larger shares institution, virtual private networks and proxy services using that traffic can be inflated stated.
Experts, miners of Sweden hindrance Bitcoin supply too much on will have no effect although it expresses increase in global energy demands and recession arguing that the blocking of miners that it can spread pretty quickly like hysteriaabout Europe’s share of supply %12 and that the withdrawal of this supply a supply shock in the short run He stated that he can create and added: Bitcoin is more than ever. can become more valuable.