Iceland Bitcoin Mining to Double Energy Consumption This Year

February 13, 2018
225 Views

Iceland is the ideal place to mine bitcoin. Thanks to the cold coupled with relatively cheap electricity costs, the region has drawn its share of bitcoin mining operations. This year alone energy expended on crypto mining will exceed that of typical domestic usage, according to reports.  

Also read: Internet Pioneer Who Influenced Assange & Snowden Dead at 70

Iceland Mining Expected to Double to 100 Megawatts

“Four months ago, I could not have predicted this trend,” Johann Snorri Sigurbergsson, Hitaveita Sudurnesja’s business development manager, announced incredulously, “but then bitcoin skyrocketed and we got a lot more emails. Just today, I came from a meeting with a mining company seeking to buy 18 megawatts.”

Powering southwestern Iceland, Hitaveita Sudurnesja is a Svartsengi-based geothermal energy plant (about four km north of Grindavík). The area is also home to cryptocurrency mining, which is increasing at a pace to use more wattage than its residents combined, effectively doubling “its energy consumption to around 100 megawatts this year,” according to reports. In fact the National Energy Authority puts its usage at more than 340,000 households on the island.

Arguably, mining is the heart of the entire bitcoin affair – and due to its concept of baked-in digital scarcity, the computational problems associated with mining blocks, confirming transactions, building what is referred to as the blockchain or distributed ledger, mining has become a lucrative business.

Svartsengi

To do so effectively, cooler climes are necessary, as are abundant sources of energy. Iceland is a natural home for the burgeoning industry, but not everyone is pleased. “Under normal circumstances,” Pirate Party legislator Smari McCarthy explained, “companies that are creating value in Iceland pay a certain amount of tax to the government. These companies are not doing that and we might want to ask ourselves whether they should.” Tapping a typical trope, the lawmaker continued, “We are spending tens or maybe hundreds of megawatts on producing something that has no tangible existence and no real use for humans outside the realm of financial speculation. That can’t be good.” The Pirate Party was once known as very pro bitcoin.

Iceland’s more timid hands might be forgiven due to its somewhat recent experience with so-called “speculation.” The 2008 Great Recession impacted it harshly, spreading to its banking system. When all was said and done, the island nation and government debt ballooned. Three of its major banks defaulted, and by some estimates it was considered the worst economic crisis in economic history relative to its size.

And especially in recent months, many people have soured on the digital asset, noting its volatility and lack of good user experience when it comes to basic transactions (fees and processing time). However, though Iceland’s economy has bounced back, it might not be wise to turn away the future of money so quickly.

What do you think about mining energy consumption? Let us know in the comments section below.


Images courtesy of Pixabay.


Need to calculate your bitcoin holdings? Check our tools section.

The post Iceland Bitcoin Mining to Double Energy Consumption This Year appeared first on Bitcoin News.

You may be interested

We are adding limited support for Bitcoin Cash SV (BSV)
Crypto News
35 views
Crypto News
35 views

We are adding limited support for Bitcoin Cash SV (BSV)

btcethereumadmin - January 22, 2019

As previously shared, Bitcoin Cash (BCH) experienced a hard fork on November 15th. The main outcome of the fork was…

Bitfury Hires a CEO for Its Blockchain-Sleuthing Service
Crypto News
24 views
Crypto News
24 views

Bitfury Hires a CEO for Its Blockchain-Sleuthing Service

btcethereumadmin - January 22, 2019

Blockchain technology firm Bitfury is looking to reinforce its software unit with two executive-level hires. Announced today, Marina Khaustova, former chief…

London Stock Exchange’s Trading Tech to Power New Crypto Exchange
Crypto News
23 views
Crypto News
23 views

London Stock Exchange’s Trading Tech to Power New Crypto Exchange

btcethereumadmin - January 22, 2019

The London Stock Exchange (LSE) is providing the trade-matching technology for an upcoming cryptocurrency exchange in Hong Kong. The LSE…

Leave a Comment

Your email address will not be published.