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Norwegian Parliament Rejects Proposal to Ban Bitcoin Mining

Miners in Norway can now breathe a sigh of relief after a string of days of anxiety related to the proposed Bitcoin mining restriction.

Norway’s Left-wing Political Parties Want to Restrict Bitcoin Miners’ Activities

In March 2022, the Red Party (Norwegian Communist Party) presented to Parliament a plan to restrict Bitcoin mining in the country with enthusiastic support from Norway’s leftist parties such as: Red Party, Green Party and Socialist Party.

Fortunately, however, they were unsuccessful. On Tuesday (May 10, 2022), the Norwegian parliament held a vote against the proposal.

The political parties that oppose Bitcoin in Norway have tried to pressure miners out of the country, by imposing very high taxes,” said Jaran Mellerud, analyst at Arcane Research. high for them or even try to ban them from mining Bitcoin.

Factors driving the development of the Bitcoin mining “industry” in Norway

Contrary to the efforts of political parties, Bitcoin mining has become one of the new “industries” of the Norwegian people. By leveraging Midnight Sun’s renewable energy source, they achieve a Bitcoin hash rate of up to 1%.

Norway is considered a “promising land” for Bitcoin mining projects because the cost of electricity generation here is very low. It is known that hydroelectricity accounts for 88% of total energy production in Norway, wind energy accounts for 10% and other sources only 2%.

Will the Norwegian government accept the option of increasing electricity tax on Bitcoin mining activities?

After being unsuccessful in their efforts to ban Bitcoin mining, leftist political parties had to come up with another option to make it difficult for miners, which is to ask the government to increase electricity usage tax on activities Bitcoin mining.

However, Norwegian news channel E24 published a post as follows:

The electricity tax for households, companies and the public sector is typically around 15.41 Norwegian Krone (US$0.015) per kWh. However, in some cases, the mining industry may be eligible for a lower electricity tax.”

In addition, according to Mellerud, there is little chance that the Government will increase electricity tax, especially for the mining industry.

Thus, although there are still many people who have a negative view of Bitcoin in Norway, it still receives the support of the vast majority of people in this country. The main reason is that cryptocurrencies are increasingly proving their worth, bringing significant benefits to those who know how to take advantage of the opportunity.

And it is certain that in the not too distant future, cryptocurrencies and blockchain technology will become an important factor in the global economy.