Sweden to become next major Mining Centre

Stockholm School of Economics stated that Sweden’s bitcoin market is growing fast, due to friendly regulatory for fintech startups and cryptocurrency mining
27 November 2017   1698

According to Claire Ingram Bogusz, a researcher at Stockholm School of Economics, Sweden is already the second largest fintech centre in Europe, with venture capital firms, practical policies, and startup accelerators in place. Investors in the Swedish fintech market have started to shift to the local bitcoin market, which has seen an rapid increase since the beginning of 2016.

Sweden is among the leaders in the global bitcoin market. There’s a very high-level of knowledge about it here, and a high-level of digital competence in the Fintech space. We may not be the size of Hong Kong or London, but it’s hard to find that level of digital competence in other financial centres.


Claire Ingram Bogusz

Researcher, Stockholm School of Economics

Furthermore, a large number of bitcoin miners have started to move to Sweden, due to its cold climate that ensures a cool environment for bitcoin miners and low-cost hydroelectric power.

Another region with cheap electricity and cold climate is the region of Northeastern China. However, Chinese miners have already started to consider relocating to other regions given the uncertainty of the Chinese bitcoin and cryptocurrency markets.

Sweden has cheap electricity and cold climate that is necessary to operate mining pools, but unlike China Sweden has friendly regulatory frameworks which allow bitcoin miners to operate more efficiently, without having to deal with restrictions from local authorities.

Buterin to Propose to Increase PoS-Validators Reward

According to Vitalik proposal, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%
23 April 2019   97

The creator of Ethereum, Vitalik Buterin, published on GitHub a proposal on changing the reward scheme for validators after the transition of ETH to the Proof-of-Stake consensus mechanism (PoS).

According to the formula proposed by Buterin, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%.

Buterin PoS Validators Reward Proposal
Buterin PoS Validators Reward Proposal

The more assets are fixed for validation, the lower the interest rate. So, 134 217 728 ETH will bring cryptoinvestors only 1.56% per annum. At the same time, the maximum annual emission volume will be 2,097,152 ETH.

Considering that the current volume of Ethereum's market offer is 105,777,585 ETH, this offer is focused on the medium and long term. Buterin also clarified that the profitability indicators are shown without taking into account proceeds from transaction fees. Consequently, the actual income of validators can be several percent higher than the values ​​indicated in the table.

According to Justin Drake, a researcher at the Ethereum Foundation, if after implementing PoS 32 million ETH will be allocated for stacking, the income of validators will be 3.2% per annum. At the same time, the annual emission indicator will be 1% (for comparison, the current indicator of Bitcoin inflation is 3.94%).

In this case, Drake notes that after the activation of EIP 1559 of the funds collected in the form of commissions, will be destroyed. Consequently, with an average gas consumption of each shard of 1000 ETH per year, inflation will drop to 0.5%.

Users left generally positive comments on the offer. However, some of them expressed fears that in the new conditions the exchange may receive significant advantages, which will be able to do stacking at the expense of clients.