BTC, ETH, DOGE: Norway to Ban Cryptocurrency Mining

The Government of Norway is imposing a temporary ban on data centers that mine cryptocurrencies such as Bitcoin (BTC).

The ruling Labour Party said the ban is the result of power-intensive crypto miners using too much of Norway’s available electricity. “Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community,” said Norway’s Minister for Digitalization and Public Administration Karianne Tung in a written statement.

The government has determined that it is best for Norway to conserve electricity for other industries and economic sectors. “The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible,” added Minister Tung in the statement. The ban on crypto mining is expected to begin this autumn. It is not clear how long the ban will last.

Banning Crypto Miners

Mining for Bitcoin and other cryptocurrencies such as Ethereum (ETH) and Dogecoin (DOGE) has been banned in many other countries, notably China, over similar power and environmental concerns. In parts of Canada and the United Kingdom, crypto mining has become a divisive issue and sparked a debate between technologists and environmentalists.

Mining for Bitcoin and other crypto involves huge banks of computers that run around the clock solving complex mathematical problems. The process uses massive amounts of electricity. However, the bans in Norway and China stand in contrast to the U.S., which is actively trying to attract crypto miners and racing to build more power-intensive data centers.

Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at $105,574.

Is BTC a Buy?

Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 25.21% in the last 12 weeks.