Cryptocurrency Information Bureau News: Norway announces temporary ban on Bitcoin mining to secure energy. What does this move indicate? #Bitcoin #Cryptocurrency #Energy
Video explanation
[Shocking News!] Norway orders Bitcoin mining to be temporarily suspended?! Why?
Hello! I'm John, your blockchain guide. You've probably heard the word Bitcoin a lot lately, haven't you? It's often talked about on TV and online news. But I'm sure there are many people out there who still don't quite understand what it is, like, "What is Bitcoin after all?" or "I hear the word mining, but what does it mean?" Don't worry! In this blog, I'll explain the latest news about blockchain and crypto assets (which are like digital currencies) in an easy-to-understand way so that even first-time readers will understand.
Well, today, some interesting news has come in. Norway, a Nordic country known for being highly environmentally conscious, has announced that it will temporarily stop building new facilities (special factories for mining) for "mining" cryptocurrencies such as Bitcoin (more on that later!). Why is this happening? And what exactly is mining? Let's take a look together!
What's happening in Norway?
The point of this news is that the Norwegian government"Starting this year, we will temporarily not allow the establishment of new Bitcoin and other cryptocurrency mining centers (large-scale facilities for mining)."It was decided that...
Since it is "temporary", it does not seem to be a permanent ban, but it is still big news. So why did Norway make this decision? To understand the reason, we first need to know about "mining".
What is "mining" anyway? A simple explanation for beginners!
The word "mining" sounds somewhat difficult, doesn't it? However, the basic concept is actually surprisingly simple.
Crypto assets like Bitcoin are not issued or managed by a country or a bank, like the Japanese Yen or the US Dollar. Instead, people all over the world cooperate to verify and record the accuracy of transactions using a technology called "blockchain" (a kind of database that links many transaction records like a chain and is managed by everyone).
"Mining" is the process of accurately adding new transaction records to this blockchain and verifying their accuracy.This task is like solving a very complicated mathematical puzzle, and people called "miners" from all over the world use computers to participate in this puzzle-solving competition.
そ し て,The miner who solves the puzzle first and approves the transaction is rewarded with new Bitcoins.This system is called "mining" because it is similar to digging for gold from the ground. Miners work day and night to earn this reward.
Why does mining use so much electricity?
Well, mining is known to consume a huge amount of electricity. Why is that?
The reason is to solve the "very complex mathematical puzzle" I mentioned earlier. This puzzle is so difficult that it is impossible to solve on an ordinary home computer. Therefore, miners
- ASIC：An ultra-high performance computer specially designed and manufactured for mining
- High-performance graphics board (GPU)：Originally a component used to display beautiful game images on computers, it is also used for mining due to its high computing power.
Hundreds, thousands, and in some cases tens of thousands of such special machines are prepared and run at full capacity 24 hours a day, 365 days a year, without rest, to compete in a calculation race. To put it in perspective, imagine the world's most intelligent athletes competing in a gigantic stadium, using an incredible number of ultra-high performance calculators at the same time to see who can solve an extremely difficult problem the fastest. And this competition continues all the time. Naturally, a huge amount of electricity is required to maintain this amount of machine power and to operate the cooling equipment to cool the large amount of heat generated by the machines.
Why did the Norwegian government decide to "pause" the program?
Now that we know that mining consumes a lot of electricity, let’s get back to the Norwegian news. The main reason why the Norwegian government is temporarily suspending the establishment of new mining facilities is:"We want to prioritize securing domestic energy (especially electricity) for other important industries and the lives of the people."Because there is a belief that...
Norway is known as a country where hydroelectric power generation utilizing abundant water resources is popular and relatively clean energy can be used cheaply. Therefore, it was one of the very attractive places for mining operators who consume a lot of electricity. In fact, it seems that many mining companies have been expanding into Norway in recent years.
However, no matter how abundant hydroelectric power is, there is a limit to the amount of electricity that can be used in the country. The government was concerned that if new mining facilities increase rapidly and electricity consumption increases sharply, there may be a shortage of electricity required by other existing industries (such as factories, data centers, and services essential to the local community), or electricity prices may rise.
The current measure is said to be "temporary," but future responses will likely be decided based on the country's energy policy and the electricity supply and demand situation.
What can we make of this news? What are the global implications?
Some of you may be wondering, "Does Norwegian news have any direct relevance to our lives?"
It is true that this will not immediately change our lives as people living in Japan, but this news is highly thought-provoking when it comes to thinking about the larger issue of how new technologies such as Bitcoin and blockchain should interact with our society and the global environment.
The massive electricity consumption associated with Bitcoin mining and its impact on the environment have long been the subject of lively discussions around the world. Norway's decision offers a new perspective to this debate. In particular, the fact that Norway, a country considered to be environmentally advanced, has made this decision may have an impact on the policies of other countries.
Each country and region has different views on energy conditions and environmental issues. People around the world are exploring how to enjoy the benefits of innovative technology while dealing with its drawbacks, in accordance with their own circumstances. It will be interesting to see whether similar movements emerge in other countries in the future.
John's words
This news from Norway may be like the "growing pains" that new technology faces as it penetrates society. I truly believe that Bitcoin and blockchain technology have great potential to change the way finance works and create new services, making our future more convenient and prosperous. However, at the same time, there are challenges that must be overcome, such as energy consumption issues and the nature of regulations. By facing these challenges head on and finding solutions one by one, I believe that technology will become more sustainable and take root in a way that is truly useful to society. I would like to continue to report on these global trends in an easy-to-understand manner!
This article is based on the following original articles and is summarized from the author's perspective:
Norway Plans to Temporarily Ban New Bitcoin & Crypto
Mining Centers to Conserve Energy