- The Nordic region has become the most profitable place for crypto mining businesses
- Electricity is a key raw material to mine cryptocurrency, which is cheaper in the Nordic region
- After countries like Kazakhstan, China, and Canada, the Nordic region has become an alternative place for miners
- The region offers environmental benefits also with a cheaper electricity
Recently it is observed that the region of Northern Europe and Northern Atlantic, which is together known as the Nordic region, has again become a profitable place to mine cryptocurrencies. The reason behind the region to become suitable for crypto mining is the low electricity cost. At one hand the price of Bitcoin is rising higher and tripled itself this year, the glut in the most important raw material to create crypto tokens has also come out to support the industry.
Why electricity is a key material for mining cryptocurrencies
As we know the cryptocurrencies are made in giant computer farms by processing complex algorithms in hangars bigger like airports. To process such algorithms in computer systems, one of the vital raw materials required is electricity. We can compare around 70,000 households total power consumption with the power used in the mining process to understand the vitality of electricity. However, in the Nordic region, recently the wet-weather since 20 years has fueled the production of electricity, by using hydro-electricity plants. With cheap electricity, the two countries of the region Sweden and Norway are supplying power at the lowest price in the world.
The Nordic region became an alternative place for crypto miners
Prior to Nordic, usually places like Chine, Kazakhstan, and Canada were the only countries chosen by the miners for their crypto mining business. However, now the Nordic region has become one of the alternative places where crypto miners can establish their operations. For several years the crypto miners were facing a lower margin of profits due to the high power cost, and lower prices for currencies mined. It is known that for boosting the hydro reservoirs to the highest level an unusual wet-weather with mild temperature is needed. And the Nordic region has had that category of weather for the last 20 years, which left the region awash in generation capacity.
The Nordic region provides a low political risk profile for BTC
The Nordic region, not only provides low power cost benefits but also offers environmental benefits. The region most commonly uses hydro, nuclear, and wind to generate electricity, which means the power is almost free from carbon. The factor is increasingly significant for many institutional investors, which can also be one of the main factors behind the recent bull run. However, if the crypto tokens run from the Nordic region, then it will help to reduce the political risk profile of BTC.
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