Nordic Nation Iceland is Alluring to Cryptocurrency Miners

    Published on:

    • Iceland is the biggest hashrate producer per capita.
    • Some crypto mining defenders say Christmas lights are more energy-intensive than Bitcoin.

    Iceland, a Nordic island nation, holds a treasure trove of renewable energy sources. The feature is especially attractive to cryptocurrency miners given the energy-intensive process in mining. Bloomberg, a New York City-based media company, says this surplus energy in the nation is drawing Bitcoin (BTC) miners.

    Climate in Iceland Fits The Bill For Crypto Mining

    BTC is currently the largest cryptocurrency by price and market cap. According to Bloomberg, rising energy costs and hardening regulatory stance towards cryptocurrency in the United States and other countries are driving the crypto mining momentum in Iceland. The nation primarily generates electricity from hydropower and geothermal power.

    Additionally, the nation’s climate is a perfect fit for crypto mining. A large fleet of high-end devices mining cryptocurrency usually generates a great deal of heat. Improper arrangements could inflict damage to these devices or even lead to a fire in a facility. Moreover, miners can install hydro setups for cooling their installations, thanks to the almost limitless water supply.

    GreenBlocks, a blockchain-focused company in Iceland, is turning Icelandic power to account for its operations. The company’s CEO, Daniel Jonsson, told Bloomberg, “Up until the mining industry showed up here in Iceland, the vast majority of this non-guaranteed power was not a sell-able product, so we are essentially buying power that nobody else can buy.”

    Bloomberg also cites a research report Luxor Technologies, a Bitcoin mining service, issued in February 2023. According to the report, Iceland is the biggest hashrate producer per capita. Additionally, the nation’s BTC mining industry consumes around 120 MW of power.

    Although the country provides cheap electricity, it is slightly expensive in contrast to other Nordic nations. Political stability adds to the flawless operations of mining curves. Miners have operated seamlessly for 10 years without political interference according to Luxor Technologies’ report. Furthermore, its isolated location prevents the island nation from the effects of global electricity price inflation.

    Source: Eurostat

    According to Eurostat, a European Union Directorate-General, Iceland uses a better part of its renewable energy for heating and cooling purposes. Moreover, the nation, alongside Norway, is the only country in the world to bring almost 100% renewable energy into play.

    Iceland’s combination of hydropower and cool climate renders it a perfect fit for crypto mining. Meanwhile, Laos, an Asian nation with abundant hydroelectricity, is turning its face from cryptocurrency miners amid ongoing drought. Its state-owned electricity provider, Électricité du Laos, announced suspension of its power supply for mining.

    Christmas Lights More Energy Intensive?

    According to sustainability-focused content provider, Digiconomist, one Bitcoin transaction consumes 656 kWh of energy which is equivalent to nearly 22 days of an average U.S. household power consumption. In addition to that, it generates 365 Kg of CO2, or equivalent to 811,023 VISA transactions.

    A study by a not-for-profit organization, Earthjustice, implies that Proof-of-Work (PoW) cryptocurrencies were responsible for 27.4 Million tons of carbon dioxide (CO2) during 2021 and 2022. However, some crypto mining defenders say Christmas lights are more energy-intensive than Bitcoin.


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    Anurag Batham
    Anurag Batham is a journalist and research analyst at CryptoSunday. He has covered blockchain, crypto, metaverse and more since 2021 and holds a keen interest in global economy and climate change with a passion to deliver useful information to the readers.