Sweden Turns Against Bitcoin

Posted on 04/18/2023

Sweden has lost its patience with Bitcoin, and will remove tax incentives for data centers that mine the cryptocurrency this summer. This could spell the end of Bitcoin in the country. The move is considered a response to rising energy prices. The Nordic countries had been a haven for Bitcoin mining, but that began to change last year. For Bitcoin to be mined profitably, energy must be inexpensive. China used to be the most popular choice for mining, but a government crackdown caused the U.S. to take the top spot. A similar situation played out in Kazakhstan, which was strong in this area, with 18% of Bitcoin mined there. However, the government suddenly became hostile toward the industry.

Sweden is undergoing a difficult time in its economy, with the government predicting a GDP contraction of 1% this year. Inflation is slowing, but is falling from almost 10% to a still quite high 8%. Wages are not keeping pace with the cost of living. The housing market has cooled by 12% over the last year, but experts in the country are expecting more pain in real estate to come.

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