Bitcoin Mining in Iceland is overwhelming the National Power Grid
Feb 15, 2018 Posted / 2588 Views
Energy experts in Iceland are getting worried that the Lucrative bitcoin and cryptocurrency mining business in the country might soon hamper the renewable energy resources in the country. Hundreds of hi tech firms have proposed new plans to build mega data centers in Iceland majorly because the countries generally low cost electricity and the naturally cold climate which requires little cooling in the mining farms.
Being a small country with a population below 400,000 people Iceland energy supplied was just enough for its central economic activities. Bitcoin mining on the other hand gallops a lot of electrical energy which majorly goes to the mining computers and the cooling equipment.
A recent report indicated that electricity demand for bitcoin mining may soon exceed that of households in Iceland if all the proposed bitcoin mining farms are realized. On a sad note the country’s major energy supplier like ON power are relaying information that the country will not be able to generate enough electricity to satisfy the demand of all the Bitcoin mining companies.
Majority of bitcoin and other cryptocurrency mining centers in Iceland are operated and owned by foreign companies. This is making law makers in Iceland to review the positive impacts majorly in terms of tax and employment opportunities these companies are bringing to Iceland.
Bitcoin mining data centers do not employ a lot of people just a handful of employees are required to operate and maintain the mining computers and the cooling systems installed in the mining farms. In order for Iceland to benefit from these companies the government ought to enact a regulation which forces the companies to purchase most of the required hardware for the mining farms rom Icelandic manufacturers.
An appropriate tax would also be imposed on the mining companies apart from the revenue from the electricity they pay to the power producers taxing the mining activities itself boost government revenue. Some regulators in Iceland recently have been talking about abolishing mining in the country citing the foreign mining companies are not bringing any positive impacts in the country.
On the other hand, since bitcoin mining is a very lucrative business especially when done on a large scale, cryptocurrency miners in Iceland can form themselves into blocks and begin producing their own energy.
Although most of the energy supplies in Iceland is derived from Hydroelectricity and geothermal Energies, the country has a very high potential for wind energy. An additional 600KW can be added to the existing energy resources from windmills energy supplies.
Bitcoin and other cryptocurrency mining cannot be avoided to take place in Iceland, mutual agreement and profit sharing should be reached between the host governments and the majorly foreign cryptocurrency mining companies operating in the country.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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