A Sneak Peek Into Norway’s Cryptocurrency Mining
With the boom in cryptocurrencies, many people around the world decided to become involved with these new assets in some capacity. Some, who found it too burdensome or intimidating to learn the intricacies of the digital assets, simply purchased the coins they found most promising expecting the value to go up and earn a profit. Others, who were more rigorous in their plans to profit from these new assets found out about mining. Mining is different for various cryptocurrencies, but the gist of it is that using computing power, the miners ‘mint’ new coin while enabling the network to function. This, at the first sight, seemed like a less risky plan. Of course, unlike with direct investment in the assets, there is more initial capital needed as the price of some of the modern miners reaches a few thousand dollars. Furthermore, those who plan to run medium or large-scale mining operations will have to account for the infrastructure as well.
The process of mining has several drawbacks that have hindered many from getting involved with it. First of all, it requires a lot of energy and if the price of the coin mined were to dive for some reason, the whole operation could become loss-bearing. In addition, several miners running at the same time generate heat. Installing the cooling system could be expensive as well and could in some cases make the difference between profit and loss. One thing that never has been considered as a major drawback of mining is the noise. Although these operations have been notorious for generating deafening noise that many workers complained about, it has never become the reason to stop running the miners.
Cryptocurrency mining in Norway
One of the biggest factors in determining whether a mining operation will be successful or not is the cost of electricity. As a result, miners have flocked to locations that offer cheap energy. For this and other reasons, Norway is a perfect place for mining cryptocurrency. The hydro-electric energy in the country is cheap and the temperature is low enough to allow economizing on cooling infrastructure. In Norway, the cost of electricity is about 7.1 cents per kilowatt hours, which is far below the average of 11 cents for the European region. “A lot of miners are keen to get into Norway and that includes Bitmain and other Chinese names,” – commented Mark Collins who is the chief executive of CBH Consulting AG.
There are many companies in Norway which have cryptocurrency mining operations. Some of them have been set up in the country, while others are international companies that have been attracted by the conditions offered in Norway. Cryptotech is a Norwegian company, which besides having mining operations that feature over 100 MW of power capacity also produce mining hardware. Bitfury, a giant in the industry, recently invested $35 million in a data mining center that will be located in Norway as well.
KryptoVault has received bomb threats because of the noise
KryptoVault, a mining company in Norway might close down as the neighbors are complaining about the noise (source: norskecasino.casino article).
KryptoVault mining operations are located in Oslo. The company specializes in large-scale mining and offers various services including the provision, installation, and hosting of hardware for others wishing to join the industry. People who might not be able to afford setting up their own mining farms can simply reserve space as well as power at KryptoVault’s facilities. As the company website states “KryptoVault facilities are powered with green and clean Norwegian energy sources from hydro and wind powered turbines.” Currently, the company uses over 40MW of power and operates more than 10,000 computers. Although an operation of this scale is able to mine cryptocurrencies worth a few hundred thousand dollars a week, it also generates a lot of noise, which has become annoying for the neighboring families.
“The sound of the factory comes 24 hours a day, 365 days a year. Our summer has been ruined,” – commented Trond Gulesto, who lives near KryptoVault’s facilities. Someone became so irritated with the noise that they sent a bomb threat to the company which read: “This is sabotage. If you are expanding crypto mining and filling the country with noise, then you will be sabotaging the peace. I am threatening to send you some explosives.” “The threat has been reported to the police, and we are taking the whole issue very seriously indeed. We have also asked the police to assess whether any further action needs to be taken,” – commented Gjermund Hagesaeter, the managing director of the company. That is not the only problem faced by the company. According to the local municipality, KryptoVault doesn’t have the required permissions needed to run mining operations. Until such permissions are acquired, the company might be forced to halt its operations.