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Europe’s Top Miners Share Local Industry Insights

05/10/2020

A study surveying reps from top EU mining firms found many believe regulations and protections offset higher electricity costs.

A report compiled by non-profit research institute, dGen, has found that European crypto miners believe that the region’s higher electricity prices when compared to China and Russia are offset by political stability, robust regulation, and strong protections.

The study also found that many miners based in Europe feel prepared for the Bitcoin (BTC) block reward halving, emphasizing that higher electricity prices have forced many miners to invest in highly efficient technologies.

Robust regulation offsets expensive electricity in Europe

F2Pool’s global business director, Thomas Heller, stated that “[h]igher electricity prices are offset by smoother business, better regulation, and more protection,” adding that “even things like getting insurance” are available to miners in the region.

The vice president of Poolin, Alejandro De La Torre, echoed Heller’s position. He asserted that the benefits of “stable government, clear or non-threatening regulation, and high levels of ease in opening businesses” afford European miners a myriad of advantages and savings.

Philip Salter, Genesis Mining’s head of operations agreed, stating:

“Political stability reduces risks, and most of all electricity coming from renewable sources makes it, in the end, the best (aka cheapest) option.”

However, GmbH’s Denis Rusinovich asserted that the United States offers miners greater options in terms of financial services when compared to Europe:

“The biggest challenge for miners in Europe is poor local development of the ecosystem in contrast to the USA, where there is efficient development in trading, banking, structured products, and most importantly, financing options for miners,”

European miners prepare for halving

When asked about the region’s prospects for weathering the impending halving, F2Pool’s second in command asserted that European miners are uniquely positioned to weather the halving through needing to invest in efficient technologies.

“Mining farms in Europe have, on average, higher electrical costs so they tend to upgrade quickly, use firmware that is more efficient and generally have better-engineered data centers to take advantage of local weather,” he added.

Rusinovich describes the halving as a “predefined trigger event,” arguing that miners across the world have been preparing by “[s]ourcing cheaper electricity, buying new more efficient hardware, and hedging financially for the upcoming risk.”

Genesis Mining’s Salter predicted that the halving will have the same impact on all miners regardless of the jurisdiction in which they are based, stating:

“Operating costs will be more important than before, so the miners that use cheap, renewable power sources will come out on top!”