Cryptocurrency miners and enthusiasts alike might have pushed things too hard in Iceland when it comes to achieving their annual cryptocurrency profit growth. Due to an increase in Bitcoin mining opportunities, the country will likely have to double its electricity supplies to avoid a complete meltdown. The Nordic island has a population of about 340,000 people, whose yearly energy consumption amounts to 700 gigawatt hours. An ever-growing popularity of various cryptocurrencies, particularly Bitcoin, has led many miners precisely here, due to cheap electricity and low tax bills.
The officials are concerned with energy consumption, as it’s estimated that mining tools such as computers, servers, motherboards and cooling devices might use an additional 840 gigawatt hours in 2018! According to Johann Snorri Sigurbergsson, spokesman for Icelandic energy firm HS Orka, new mining centers and companies that are interested in investing could face power outage in particular areas.
Nearly all of the country’s utilities come from renewable energy sources, and that is why the price per KWH holds steady. However, the government officials are considering certain changes in regards to mining operations, as many of them do not require staff, infrastructure or further investments – resulting in low taxes, fast profit and high energy consumption.
Companies with huge incomes in Iceland pay a hefty price to the government, and mining groups are trying to avoid their obligations to the state – says a member of Iceland’s Pirate Party, Smari McCarthy. Comparing Bitcoin mining with gold digging represents a unique opportunity for many energy companies to invest, but large-scale mining operations demand great environmental costs, which should be appropriately compensated, adds McCarthy.
Source:
"Energy riches fuel bitcoin craze for speculation-shy Iceland", Egill Bjarnason, apnews.com, February 12, 2018.
coolsongss
6 years ago
Hero Member
This is a very bad point of BitCoin. Iceland is one of the European countries I want to visit in the future. They actually hit hard, really hard in 2008 financial crisis, but they have overcome it eventually, as far as I know. I believe that BitCoin thing won't be a national hazard again, reflecting on their 2008...
This is a very bad point of BitCoin. Iceland is one of the European countries I want to visit in the future. They actually hit hard, really hard in 2008 financial crisis, but they have overcome it eventually, as far as I know. I believe that BitCoin thing won't be a national hazard again, reflecting on their 2008 experience.
Show morePlease enter your comment.
Your comment is added.
Joe Wrinkle
6 years ago
Full Member
Renewable energy is like any other area that has advancement ability... Its only 1 breakthrough from advancing at a much faster rate then ever expected. As it draws more attention from the world at large I have to much faith that someone somewhere will see the problem and still just click and everything will be on to the...
Renewable energy is like any other area that has advancement ability... Its only 1 breakthrough from advancing at a much faster rate then ever expected. As it draws more attention from the world at large I have to much faith that someone somewhere will see the problem and still just click and everything will be on to the next worry but this is a prime example of why im loving the new shop option of litecoin!! My preferred crypto!!
Show morePlease enter your comment.
Your comment is added.
jade
6 years ago
Super Hero
I've seen TV shows on just this kind of stuff. The fees for these transaction are so high, you would think these minors make enough money to be able to pay the cost of mining. I can also understand why they would want to go somewhere that their costs would be cheaper, so they can keep more of the money they make mining....
I've seen TV shows on just this kind of stuff. The fees for these transaction are so high, you would think these minors make enough money to be able to pay the cost of mining. I can also understand why they would want to go somewhere that their costs would be cheaper, so they can keep more of the money they make mining. It is almost like an avalanche effect. Now with the addition of so many new cryptocurrencies, will they help decrease the effects of Bitcoin mining, or will the diversity add to the current problems. As far as the energy required to do mining, I'm wondering if the collateral damage will eventually cause the collapse of cryptocurriency, the collapse of something else or everything else. We're now starting to really understand and prepare for future energy needs with renewable energy sources, but we're not even close to having what we need. The internet and the devices we're using to access it are also growing fast, what will be the ramifications of these things........... Maybe we've come to far, too fast.
Show morePlease enter your comment.
Your comment is added.
Andreas_V
6 years ago
Full Member
How about that, could we have ever imagined that additional supply of electric energy will be in demand in order to maintain the levels of Bitcoin mining? Kudos to Iceland (a great country in so many ways) for creating all of their energy from renewable sources, that is really amazing.
Please enter your comment.
Your comment is added.