Cryptocurrency Miners Vanish In Sweden, Leaving Big Electricity Bill

The Swedish county of Norrbotten has seen the failure of not one, but two recent cryptocurrency mining initiatives. The companies involved have simply disappeared leaving only unpaid bills in their wake.

ABOVE THE ARCTIC CIRCLE, SWEDEN

The most northerly Swedish county, over half of Norrbotten’s area lies within the arctic circle. Cool conditions for mining cryptocurrency, one might think, but it seems success is far from a foregone conclusion.

The municipalities of Älvsbyn and Kalix had welcomed investment from crypto-companies in the region. Neither, however, got quite what they had hoped.

 

POWER CUT

In Älvsbyn, Miami-based NGDC had set-up facilities and started mining bitcoin, only to abruptly cease operations in the Autumn. The explanation given was that the energy company, Vattenfall (Waterfall), had cut off the electricity due to unpaid bills.

Vattenfall has applied for sequestration, closure, and bankruptcy for NGDC. It is less optimistic about its prospects of retrieving payment for the unpaid electricity bill of 14 million SEK (around $1.5 million).

 

 

The municipal council, which owns the premises used by NGDC, has tried unsuccessfully to contact the company, to remove their equipment, according to local news sources. Still, at least the authorities in Älvsbyn didn’t suffer any financial loss.

 

NO SHOW

In Kalix, 100km to the East, near the border with Finland, the municipality is trying to recover half a million kronor ($55,000) in unpaid rent. A company called Chasquitech put forward their plans for bitcoin mining in the Spring, but never arrived to start operations.

Crypto-mining companies in Sweden have faced a difficult time recently as drought conditions in the summer forced up the price of electricity. Combined with lower bitcoin price, this has meant profits are ever harder to come by.

Patrik Öhlund, CEO of The Node Pole, still sees a bright future for the industry as a whole and cryptocurrency mining in Sweden. He thinks the number of data centers (currently 50) can only increase. “Looking five years ahead, we would not be surprised if we see a doubling, upwards of a hundred,” he said.


Source
Author: EMILIO JANUS
Image Credit
Image Credit

California Legislature Passes Blockchain Working Group Bill

The California Legislature has passed Assembly Bill 2658, which provides a legal framework for the recognition of blockchain technology in the state’s insurance code.

LIONBIT

Introduced by Democrat Ian Calderon, the bill sought to amend Sections 1624.5, 1633.2, and 1633.75 of the Civil Code, Section 25612.5 of the Corporations Code, Section 16.5 of the Government Code, and Section 38.6 of the Insurance Code, with relation to blockchain technology, electronic signatures, and smart contracts.

New Inclusions and Definitions

Under previously-existing California law, the Uniform Electronic Transactions Act offered legal protection and enforceability to the use of electronic signatures in creating contracts, specifying that in the events of a requirement for writing or a signature, an electronic record or signature should suffice.

No mention was made, however, of electronic records or signatures secured using blockchain technology, which was a point of legal ambiguity for blockchain-based businesses. The new bill expands the definition of “contract” under California law to include “smart contract,” which provides legal basis for use of blockchain-based electronic signatures in sealing contracts.

It also specifies that any individual doing interstate or foreign commerce using blockchain technology to secure information they own or have rights to has access to the same ownership and usage rights in California.

Under the bill, Section 1633.2 of the Civil Code is amended to include a legal definition of blockchain technology, and Clause “e” in the section is amended to read as follows:

“‘Contract’ means the total legal obligation resulting from the parties’ agreement as affected by this title and other applicable law. ‘Contract’ includes a smart contract.”

TIP

Clause “h” is also amended to read as follows:

“‘Electronic record’ means a record created, generated, sent, communicated, received, or stored by electronic means. A record that is secured through blockchain technology is an electronic record.”

Clause “i” is amended to include the sentence: “A signature that is secured through blockchain technology is an electronic signature.” Clause “p” is also added to give a legal definition of “smart contract” under California law.

It reads:

“‘Smart contract’ is an event-driven program that runs on a distributed, decentralized, shared, and replicated ledger that can take custody over, and instruct transfer of, assets on that ledger.”

In February, CCN reported about Assembly Member Calderon’s efforts to advance blockchain use for electronic signatures and smart contracts in the state. The passing of bill 2658 represents a major coup for Calderon, who at age 29 became the first millennial to be elected to the state legislature.

In April, CCN also reported that California Senator Bob Hertzberg launched bill SB 838 to allow blockchain technology into formal documentation known as a corporation’s articles of incorporation throughout the state.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author: David Hundeyin
Image Credit


Peoples Token