Bitcoin mining in Iceland will double energy consumption this year

Bitcoin mining in Iceland will double energy consumption this year

Iceland is the ideal place for bitcoin mining. Due to the cold climate and relatively low electricity costs, the region has attracted bitcoin mining operations. This year, the energy consumed on the crypto mining will exceed, according to the latest reports, domestic use.

Bitcoin mining in Iceland would double to 100 Megawatts

Four months ago I could not have predicted the trend,” said the business manager at Hitaveita Sudurnesja, Snorri Sigurbergsson, the business manager. “But then the bitcoin grew fabulously and we received many more messages. Right today, I came back from a meeting with a mining company looking to buy 18 megawatts.

Hitaveita Sudurnesja is a geothermal energy complex in the Icelandic town of Svartsengi that covers the energy needs of all of Southwest Iceland. The area also houses the cryptocurrency mine, which is growing at an accelerated pace. Bitcoin mining in Iceland uses more voltage than all residents, doubling energy consumption to almost 100 megawatts this year, according to the latest reports. In fact, the National Energy Authority thinks that miners use more than 340,000 households on the island.

Mining is the soul of the bitcoin network. Due to the limited supply concept implemented, the computational problems associated with blocking blocks, the confirmation of transactions and the construction of the blockchain distribution register, mining has become a profitable business.

To do this, it requires a cooler climate and abundant energy sources. Iceland is the natural host of the industry. Not everyone is delighted with the idea. “Under normal circumstances,” said Smari McCarthy, a lawmaker in Iceland, “real value companies in Iceland are paying some taxes to the government. These companies do not do this, and we might wonder if that is the case. We spend tens, perhaps hundreds of megawatts, to produce something that does not have tangible existence and real use for people besides financial speculation. It can not be a good thing. ”

The party of McCarthy, the Pirates Party, was previously known to be on the bitcoin side.

Iceland’s somewhat shy approach can be attributed to the little experience it has with the so-called “speculation.” The financial recession of 2008 has had a tough impact on Iceland and has expanded to the banking system. In the end, the government and the nation’s debt were fantastic. Three of the large Icelandic banks have entered default and, according to some estimates, the country has experienced the biggest crisis in the history of the economy, in relation to the size of the state.

Especially in recent months, many people have rejected digital coins because of volatility and lack of good interaction with users when it comes to a simple transaction. We’re talking about processing times and commissions here. However, although Iceland’s economy has returned in the meantime, it may not be too wise to reject so quickly the financial future.

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