its power consumption is a problem

The power consumption of Bitcoin (BTC) mining in Sweden raises questions for the country’s government. The low cost of renewable energy in Sweden as well as tax breaks do attract miners.

Bitcoin mining raises questions in Sweden

While the Sweden Questions about his electricity consumption, Khashayar Farmanbar, the Minister of Energy considering that Bitcoin (BTC) is not a priority:

“To be honest, we need energy for more useful things than Bitcoin. »

According to the University of Cambridge, the bitcoin mining in Sweden regained 0.84% ​​of the global hashrate last January. The country enjoys a certain popularity, thanks to the cost of energy emissions from wind and hydroelectric power plants. It would be the cheapest “clean” electricity in the world.

This growing increase worries politicians, who believe that it could Strategies of other penal industries from the country. More generally, demand for electricity is increasing in Sweden. It is in response to this trend that the government has asked the Swedish Energy Agency to monitor the consumption of digital infrastructure and especially mining.

Sukesh Kumar Tedla, president of the Swedish Blockchain Association, points out that while mining is indeed energy-intensive, its critics should however put it into perspective by using other comparison scales :

“Yes, cryptocurrency mining consumes a lot of energy today, but so do many other innovative technologies that help run our society. »

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Tax breaks reconsidered

For the moment, no concrete measures have been announced. However, Khashayar Farmanbar suggests that the order of priority actors wishing to access the electricity network could be modified. The tax regime is also likely to be revised upwards.

Data centers effectively benefit from a privileged treatment in Sweden. Thus, the fact that in a certain way, the Bitcoin miner amounts to processing data, this places this activity in this tax regime. Or, these measures were supposed to attract web giants such as Meta or Microsoft for example. While the use of data by such actors may be open to debate, the idea was actually to foster job creation.

But the fact that miners knew how to take advantage of this opportunity is not not to everyone’s taste. This is what Erik Thornstrom, senior adviser to the industry group Swedenergy thinks:

“I think the tax breaks needed to be focused on the business they were supposed to attract in the first place. Cryptocurrency mining is more debatable. »

If Bitcoin can be improved on certain points, we note that, which countries, the same arguments keep coming back. Faced with this observation, significant educational work on the values ​​of Bitcoin still needs to be carried out. When it comes to its environmental impact, many prejudices actually die hard.

👉 Also in the news – New York Yankees will now receive their salaries in Bitcoin (BTC)

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Source: Bloomberg

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