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Sweden cuts incentives for bitcoin mining and hikes electricity tax by 6,000%

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Gherardo Fiorenzo
Gherardo Fiorenzo is an Italian author with a unique perspective shaped by his experiences in Italy and the US. His thought-provoking articles, short stories, and reviews explore the intersections of language, identity, and culture.

Sweden is moving away with Tax incentives for Datacenters come July 2023. This decision can influence bitcoin (BTC) miners who Resorted to the Nordic countries to increase its profitability.

Sweden eliminates tax incentives for bitcoin Miners

Sweden was the center for bitcoin Miners over the last year and he one of the last remaining strongholds in Europe. Energy prices were across the continent rising Primarily because of the ongoing war in Ukraine. because of This, most bitcoin Miners cleared out.

Norway and Sweden, northern regions of continent, remained last Districts are still profitable and operating for bitcoin Miners. the reason It was the perfect location for Data centers, such as cold temperatures and access To generate cheap renewable hydropower power.

Sweden is now abolishing tax incentives that could prevent new investments in Region. based on on November 2022 financial budget In the report, Sweden will increase its electricity tax from 0.006 SEK ($0.0006) to 0.36 SEK ($0.035) per kilowatt-hour (kWh) by July 2023. Currently, Sweden is home for miners who use about 150 megawatts (MW) of power.

Jaran Millrod A senior analyst In Luxor Technologies, a crypto-mining company, it said that raising this tax would increase electricity costs to $0.093/kWh. Moreover, it is added Putting electricity costs on these mean levels using MicroBT Whatsminer M30s, moderate efficiency bitcoin Mining chips, you will only break even when current market conditions.

targeting bitcoin Miners

track this moveFrancis Coppola said that cryptocurrency supporters can explain move K attack. Since Sweden imposed a 98% tax cut for data centers in 2017, pace of job creation It was four years shorter than expected down Line.

based on on The budget energy crisis has led to higher household electricity prices. Therefore, any attempt to cut taxes will take energy from other manufacturing industries, which are very prolific in creating Careers.

Microsoft and Hive, both of which have data centers in the regionConsideration’s sudden actions may protest government commissioned report on The energy impact of data centers, which is currently incomplete.

Moreover, the tax will be implemented in the middle of the year hard to plan. they also complain about the lack of official Communicate with active bitcoin Miners in the region. Instead, just a page on tax authority website Highlight the change.

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