Norway Ends Electricity Subsidies for Bitcoin Mining
As per reports from Aftenposten, an electricity subsidy that the Bitcoin miners in Norway were enjoying till date has been withdrawn by the government. Reports from the local newspaper state that miners in Norway will now have to pay regular taxes for power as per the government’s new state budget. It will be starting the next year.
At present, larger local Bitcoin mining companies are enjoying the same tax discounts on power as the other power-intensive companies across the country. As per reports, the idea of scrapping power subsidies in Norway came from the Norwegian tax Administration- an agency operating under Norway’s Ministry of Finance. The proposal has been approved and it will be implemented from January 2019.
Bitcoin Needs Excessive Energy
Lars Haltbrekken (SV), a parliamentary representative says” The state is unable to offer huge tax incentives to the Bitcoin Industry. It needs excessive energy and produces huge greenhouse gas releases universally.”
ICT Norway, the technology lobby agency came up with protests at the new rules. The agency claims that this type of power fast action will be signed shortly. Roger Schjerva, Chief Economist stated that Norway will “still have to supply power to centres within the power market of Nordic. It is only be hoped that the politicians have a clear understanding that energy-intensive actions are things that we will be living soon.
Is Bitcoin Mining Fated?
With the introduction of the new policy by the government, now the Bitcoin miners will have to pay massive taxes. This will have an impact on their profits. The entire procedure is concerning because the Bitcoin industry is under tremendous pressure. The pressure has been generated because of low crypto rates. As per present policy, approximately 0.48 ore per kilowatt hour is charged for above 0.5 megawatts capacity in place of the average rates. This means that the miners in Norway were previously paying just 2.8% of the standard price.
This makes it essential to ponder on the point that how viable it would be for such companies to continue with their operations.