Sweden and Norway have become lucrative locations for mining bitcoin and other cryptocurrencies thanks to a downtrend in electricity prices. The wettest weather in at least 20 years has led to an increase in the productivity of hydroelectric power plants. Humidity and moderate temperatures in Northern Europe made it possible to fill the reservoirs of hydroelectric power plants. As a result, the cost of electricity in that area was close to zero at certain times, and average prices this year amounted to about one third of those recorded in Germany, Europe’s largest electricity market.
Electricity is one of the key inputs in cryptocurrency mining. Bitcoin is usually mined in China, Kazakhstan or Canada, for example. Needless to say, the outlook for crypto is unclear and it is probably the most risky investment around today. However, there is a lot of money in the global financial system and rates are negative or close to zero. The bullish trend for all assets without exception should continue in 2021.