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Swedish Energy Minister Prefers Green Steel Over Bitcoin Mining

Sweden’s Energy Minister eschews bitcoin mining in favor of a manufacturing sector employing citizens.

In an interview, Energy Minister Khashayar Farmanbar said the country needs energy for more useful activities than bitcoin mining. He said that Bitcoin doesn’t even come into the argument when the manufacturing sector is considered.

Sweden‘s crypto mining sector has thus far enjoyed the benefits of primarily clean hydro and wind electricity in Sweden, which may hold the greatest concentration of mining power in Europe.

Under average weather conditions, the Nordic region, including sovereign states Denmark, Iceland, Norway, and Sweden, have a surplus of 30 terawatt-hours of clean electricity, the DW reports. This surplus has attracted heavy industry into the region, including steel-making from iron.

Bitcoin miners use computing power to solve complex puzzles, secure the bitcoin network, and receive bitcoins as rewards. While not human resource intensive, the process requires large swathes of cheap electricity and land. Mining operations’ profitability depends on miners’ ability to secure cheap electricity and the swings in bitcoin’s price.

Some of the big mining companies with operations in Sweden are Canadian company Hive Blockchain Technologies Ltd, and Hong Kong-based Genesis Mining Ltd. Genesis Mining uses a mix of hydro (54.5%), nuclear(42.8%), and wind energy(2.7%) and is based in the town of Boden on the east coast of Sweden.

How could the government clamp down on mining?

Farmanbar declined to elaborate on how the energy ministry would discourage mining, though there are two possibilities. The ministry could prioritize new power users based on their ability to benefit society through employment. SSAB AB, which manufactures sheet and plate steel for the automotive, engineering, and construction sectors, intends to open a steel plant powered by clean energy in the north. It believes the grid operators should give greater consideration to industries such as theirs instead of providing power on
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