Norway’s hesitation to fully embrace Bitcoin mining is a missed opportunity, not only for economic growth, but for the kingdom’s security. As a country with a power grid driven 92 percent by hydro power, Norway is uniquely positioned to embrace bitcoin mining.

Nevertheless, the upcoming ban on new mining signals a cautious, perhaps short-sighted attitude toward this transformative technology. By reevaluating the approach, Norway can secure its financial sovereignty and hedge against global uncertainty.

Bitcoin, which now reaches highs of 118,000 dollars and has a market value of around 2.3 trillion dollars, is no longer a niche, but a global force. It ranks as one of the largest assets, surpassing companies like Amazon in market value, but is still significantly smaller than gold as an asset class, with gold’s total value at approximately 21 trillion dollars.

Nations are considering adopting bitcoin as a reserve currency, which shows a shift in how countries view decentralized finance.

Why, then, are they halting mining, a central part of Bitcoin’s ecosystem? The argument for embracing Bitcoin mining is about more than profit – it’s about control and the kingdom’s security, especially Bitcoin’s resistance to censorship in a volatile world where fiat currencies are becoming increasingly vulnerable to confiscation and geopolitical interference.

By hosting mining, Norway can keep transactions in Norwegian kroner secured via NOK over bitcoin, and reduce dependence on foreign financial systems that are vulnerable to sanctions or instability. This is a security strategy that strengthens national preparedness.

For example, in turbulent times such as a geopolitical crisis or cyberattack, Norway’s local mining could ensure continuity by maintaining decentralized transaction validation. With Norway’s NATO position, this would strengthen cyber-resilience, protect critical societal functions, and keep the economy operational without dependence on vulnerable global banks – just as the USA now regards Bitcoin as a strategic resource for national security, including against threats from China and to promote energy independence.

Mining can also function as critical infrastructure, by integrating with energy systems to increase security against blackouts and external attacks. A robust mining network strengthens Bitcoin’s decentralized infrastructure and ensures that no single actor – foreign or national – can manipulate it. Norway’s energy grid makes the country an ideal center for this, turning a perceived disadvantage into a strategic resource.

The current proposal for a mining ban, driven by concerns about energy consumption, seems like an impulsive reaction. Yes, mining uses electricity, but Norway’s hydro power is abundant, and mining can contribute to better balancing of the power grid by utilizing surplus power from local small hydro power plants.

Norway has thousands of small hydro power plants that often produce more energy than local needs, especially in remote areas where transmission capacity is limited – energy that otherwise goes to waste or is “stranded.” Bitcoin mining functions as a flexible load that can be placed near these facilities, where it absorbs the surplus immediately and adjusts according to availability: Miners can be turned on when production is high (e.g., during wet periods) and off during peak loads, without straining the grid. This monetizes the surplus for power producers, increases the profitability of small hydro power plants, and reduces energy losses.

Studies show that Bitcoin mining can stabilize power grids by absorbing surplus energy, as seen in places like Texas, where mining smooths out fluctuations in production and demand. In Norway, examples have shown how small hydro power plants with unused capacity have flourished by collaborating with mining companies, which use the surplus without waste, while generating revenue and creating local jobs.

Instead of restrictions, the government could stimulate mining by exploiting surplus energy from remote power plants, which would increase the grid’s efficiency and reduce energy losses. Critics may argue that a mining ban protects, but this overlooks the bigger picture and the economic benefits. By supporting local mining, Norway can create thousands of jobs in the high-tech sector, attract international tech talent, and generate significant revenues through taxes and exports of mining services.

A domestic mining industry would also position Norway as a bitcoin leader in Europe, increase export revenues, and strengthen the economy against global shocks. By not doing this, Norway risks losing influence to nations like the USA or China, where mining is thriving despite regulatory hurdles that are now decreasing.

Moreover, such an embrace of Bitcoin mining could be central to Norway’s aid efforts, particularly toward countries in Africa. Norway provides around 8.4 billion kroner annually in earmarked aid to Africa, and Bitcoin can revolutionize aid distribution by increasing transparency and traceability, reducing corruption, and ensuring faster, cheaper transfers to unbanked populations.

In Africa, where Bitcoin mining is already driving energy production and electrification in rural areas, Norway could use its mining expertise to support projects that combine energy development with financial inclusion, such as financing mini-power plants that mine Bitcoin to subsidize local electricity – thereby enhancing the impact of Norwegian aid through better traceability and efficient use of funds.

The world is moving toward decentralized finance, and Norway’s indecision may leave the country on the sidelines. By embracing Bitcoin mining and building a strategic Bitcoin reserve, Norway can secure its financial future, balance the power grid more effectively, strengthen the Norwegian krone through diversification and inflation protection, and assert greater control over its economic destiny. It is time to stop seeing bitcoin as a risk and start treating it as a strategic tool for resilience in an uncertain world.