Iceland to run out of energy running Bitcoin Mining

Iceland to run out of energy running Bitcoin Mining

Iceland is at the forefront of bitcoin mining due to its exceptionally low energy prices, but now Icelandic energy firms confirm there may be a shortage of power to run homes if the scheduled amount of bitcoin mining to take place goes ahead. Its estimated that the mining operations will use around 840 gigawatt hours of electricity compared to 700 gigawatt hours that is used to power all the homes in the country for the year.

Iceland has a population of just over 340,000, but the demand for new data centres for mining operations has been overwhelming, to the point where if all the proposed centres were built then they wouldn’t have close to enough electricity to power them all.

The boost in mining comes in Iceland from extremely low energy prices and the announcement of The Moonlite Project; an ICO that focuses on mining using 100% green energy. Industrial connections cost just $0.043/kWh and can be cooled using the Icelandic climate, saving more money than other miners who have to fund expensive cooling systems in their data centres.

Mining centres require very few staff and don’t need particularly large investments in infrastructure, resulting in not returning much to the economy of such a small country. Combine that with low tax bills and you can begin to see the issue this begins to pose on Iceland. Other companies in Iceland that are making money are required to pay a certain amount of tax to the government, something that could be included for bitcoin miners in the future as currently they are not.

Page Last Updated: 05/03/2018 10:54:00