This is how the increased humidity of the Scandinavian climate has influenced the current Bitcoin price boom

Scandinavia has enjoyed its wettest climate in two decades in recent months. It would not be strange to discover that this fact has had some kind of economic consequence ... but it may be surprising that is related to the recent appreciation of Bitcoin.

In cryptocurrency jargon, new units of this currency are 'mined': that is, they are put into circulation thanks to the computing power put in place by the 'miners', users who usually resort to large sets of computer equipment for this.

Originally, the first bitcoins were mined on ordinary PC's, but with the popularization of this cryptocurrency and the complexity of the mining process (always in constant growth), it has been left in the hands of the so-called 'farms', computer rooms that in many cases are the size of airport hangars.

And that requires large amounts of spending on electricity. And the price of electricity in countries like Sweden and Norway has been among the cheapest in the world for some time: in the case of Norway, last year it enjoyed the lowest price of the 30 member countries of the International Energy Agency .

Prices Norway

Fall in electricity prices in Norway (data from Statista).

And this took place thanks to an extraordinarily humid climate that has boosted the production of hydroelectric plants, lowering the costs of the energy generated.

Investors prefer Norway to Kazakhstan

During the great cryptocurrency 'boom' of 2016-2017, the Scandinavian region already experienced great popularity among 'miners' of cryptocurrencies. But after that, the low (and even zero) profit margins derived from a rise in electricity costs while that of Bitcoin plunged, caused many miners to leave the business.

His abandonment granted countries such as Kazakhstan, Mongolia or China a preeminent position among the world producers of Bitcoin. But the political profile of these countries frightened investors, who were looking for stability and security.

Guide to know if they are using me to mine cryptocurrencies on the Internet

The change in energy cost in Scandinavian countries has given the 'miners' the opportunity to return there, and investors to re-invest in stable countries of the western world. It is impossible not to see a correlation between this fact and the recent recovery of the maximum prices of Bitcoin.

In November, Dutch blockchain technology company Bitfury Holding BV announced that it would invest $ 35 million to expand its facilities in Norway. Tyler Page, a business developer at Bitfury, recently told Bloomberg that they were able to confirm growing investor interest in the country.

All Norwegians have their own bitcoins

Interestingly, while Norway's commitment to green energy is at the base of the new Bitcoin boom, its huge profits derived from oil exploitation has also enabled its successful sovereign wealth fund, Oljefondet, to start investing in two companies with major bitcoin portfolios: MicroStrategy and Square.

Why am I not going to invest in bitcoin or cryptocurrencies

Taking into account the value of these portfolios and Oljefondet's percentage of participation in them, it turns out that currently each Norwegian citizen is the owner of at least 0.000115578 BTC (about 2.54 euros at the current exchange rate), although many of them know absolutely nothing about cryptocurrencies.