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– It is not relevant to use our electricity in such an insignificant activity, says Mímir Kristjánsson in Rødt. Norway’s largest bitcoin company answers the charges.
– Bitcoin alone uses more electricity each year than all of Norway combined. It is extremely energy intensive, and in practice it is silly, says Mímir Kristjánsson from Rødt to Nettavisen Økonomi.
The question of what Norwegian energy production will be used for, and where the new green energy production will come from, is already much debated in Norway, and it will be a major political battle towards the September parliamentary elections.
At the Rødt national meeting on Wednesday, the party will likely vote unanimously for something that do not will use electricity, that is, cryptocurrency recovery.
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– Don’t waste our resources
Bitcoin is by far the best known cryptocurrency, and recently the value of all bitcoins on the market surpassed $ 1 trillion, after the bitcoin exchange rate rose to a record high of more than $ 54,000. As of Tuesday, the value is hovering around $ 49,435, and the total value of bitcoin is $ 914 billion, or NOK 7,860 billion. By comparison, the Norwegian Petroleum Fund is worth NOK 11.087 billion.
In this country, several data centers operate with the extraction of cryptocurrencies, and the government has a strategy that establishes that Norway will make itself attractive to foreign players in the data center industry, thus attracting investment, experience and creation of value. Red profile Kristjánsson believes that these should not be used for cryptocurrency mining.
– It is important to do it now, precisely because many have plans to invest in data centers in Norway in the future. We must make it clear that these hubs will not be used for mindless bitcoin mining, says Kristjánsson.
Researchers have calculated that bitcoin uses a total of around 121.36 TWh per year, and that consumption will likely not decrease until the value of bitcoin declines. A study by Nature shows that bitcoin requires at least 1200 times more energy per transaction than a normal bank spends on a card transaction. Norway should not contribute to this, believes Kristjánsson.
– Don’t you think that the ban on bitcoin mining will affect the entire data center investment in Norway, which could be important for the creation of new value and new jobs in the districts?
– She can. But we believe that we should not waste our resources on that. Our own data should, as far as possible, be stored in Norway and in that sense we should have data centers to facilitate this. But I am skeptical whether it will be an industrial policy adventure for Norway. We would prefer to use our electricity in energy-intensive industries and battery factories, where I think energy is best used, says Kristjánsson and continues:
– It is not relevant to use our electricity in meaningless activities. I also believe that the remaining data centers will have greater legitimacy if cryptocurrency is excluded.
Read More: Bitcoin Crashed Following Warning From World’s Most Powerful Economist
Chief Cipher: – It’s funny that Rødt should fight to preserve the hegemony of the financial elite
Kjetil Hove Pettersen, is the CEO of the bitcoin company Kryptovault, which has built data centers in both Hønefoss and Dale. You are aware that Norway is a good country to invest due to political stability and predictability of business policy. Pettersen notes, for example, that the government has facilitated a lower electricity rate for the data center industry, albeit after much deliberation.
Pettersen is surprised by the proposal to Rødt, which he believes is based on a number of misunderstandings and misconceptions about the industry.
– My first reaction is that it is not surprising that this comes from Rødt, who wants to ban everything they don’t like or don’t understand, says Pettersen.
The Kryptovault director emphasizes that the industry only uses surplus energy and that data centers do not steal electricity from others.
– Last year, the electricity producing companies burned inside with their electricity, and the alternative to sending us electricity is to send the electricity abroad. There are no advantages in the form of value creation and jobs in Norway.
Many have pointed out how cryptocurrencies challenge the financial industry’s position, so Pettersen is surprised that it is Rødt who is fighting bitcoin mining.
– I think it is funny that it is Red who will fight to preserve the hegemony of the financial elite over the securities that contribute to the profitability of small investors and the man in the street, says the head of Kryptovault.
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Not just for IT professionals
– That Rødt takes the financial elite in defense in this way, probably few had thought beforehand, says Kjetil Thorvik Brun of the NHO Abelia association with a twinkle in his eye.
Brun, Abelia’s director of technology and digitization, recalls that the uncertainty surrounding the electricity tax created waves in the data center industry and that customers fled when the government increased taxes for a period. He fears the same thing will happen again if politicians again create uncertainty in Norway as a country in which to invest.
– Such unpredictability and such proposals from politicians are not compatible with Norway’s stated goal of becoming a sustainable data center hub. I would clearly say that this will be a concern for a larger chunk of the business community and data center industry than just crypto players, Brun says.
He rejects Kristjánsson’s skepticism about the potential for job and value creation.
– An investment in data centers contributes not only with jobs for IT security experts and people with an IT PhD, but also for people in transportation, electrical installers, refrigeration experts, contractors, etc., says Brun.
– But data centers seem to consume a lot of energy. Why should Norway prioritize the use of green energy in data centers?
– How much electricity do we have in Norway, others must answer. There is no question that the data center industry consumes a lot of electricity. In Norway, we have green energy and we produce a lot. If the data centers are not located in Norway, they will be located elsewhere with electricity from other energy sources. The establishment in Norway is positive for the global climate and for Norwegian value creation, says Brun, who emphasizes that the industry invests heavily in new solutions for energy savings and efficiency.
Read more: Experts believe that the Bitcoin exchange rate can be multiplied by ten: – Not unlikely
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