The bill passed despite the local government’s attempt to prevent its implementation. The Bern government council stated that Bitcoin energy consumption was a globalized issue and did not pertain to Bern’s energy grid. The other concern was that no government or central bank could track or control the issuance of $BTC, since the coin is not legal tender in the country.
However, Bitcoin mining facilities are increasingly local, seeking specific energy production regions and the right climate for easier cooling of the mining rigs. Switzerland already redirects 3.6% of its energy to general data centers. Despite the backlash to the bill, it was approved with a large majority.
As a result, the local government will have to produce a report on the available excess energy in the canton of Bern. The report would point to how Bitcoin mining can stabilize the grid, working in cooperation with local mining companies.
Switzerland has good local conditions for mining centers
Switzerland is not only friendly to the financial side of crypto, and home to some of the biggest crypto organizations. The country is in the top 10 territories based on Bitcoin node availability. Nodes are usually run by mining operations or experienced users, due to their memory-intensive technology.
Switzerland hosts a total of 971 nodes, ranked ninth among the top countries. The nodes represent 2% of the Bitcoin network. In Europe, Switzerland is the fifth largest node host, after Germany, France, Netherlands, and the UK.
The Linthal mining operation, moved from its initial location in Zurich, is one of the world’s biggest farms. The farm has operated since 2016, becoming one of the first large-scale facilities, even before the mass awareness of $BTC.
Switzerland is host to multiple modern mining centers. However, mining farms are less demanding and do not require warranted uptime. Farms can be switched on and off depending on the price of electricity and overall market conditions.
Additionally, Switzerland has a dominance of hydroelectric power, one of the preferred and clean sources for Bitcoin mining. Up to 62% of the country’s generation comes from its mountainous terrain and rivers.
Hydroelectric power has been used in combination with a cool climate to create mining operations worldwide. Switzerland is nearly self-sufficient and may spot small excesses, enough to run medium-range mining operations. Facilities of 50-80MW are spreading worldwide, as investors seek secure and relatively cheap power sources.
Regarding its generation mix with, a prevalence of hydroelectric power, Switzerland has a similar profile to Bhutan, one of the countries that chose government-controlled mining operations. Bitcoin miners have also thrived with other available excess energy sources. Those include gas flares and geothermal power from volcanoes.
Bitcoin’s global usage is higher than the consumption of Finland. Recently, the growth of power for mining operations has slowed down, as machines and cooling have become more efficient. The biggest advantage is finding the cheapest source of power, which helps to make new $BTC production profitable.
Miners have been ready to also work below breakeven, with the hope of future $BTC appreciation. As of 2024, the price of producing $BTC is above $74,000, while market prices remain above $95,000.
cryptopolitan.com
