• News
  • Money

Iceland's bitcoin mines 'could pinch all the power'

Iceland's bitcoin mines 'could pinch all the power'

"If all these projects are realised, we won't have enough energy for it", Sigurbergsson tells the BBC.

Johann Snorri Sigurbergsson, business development manager at the energy company Hitaveita Sudurnesja, said he forecasts Iceland's cryptocurrency mining to double the country's energy consumption up to 100 megawatts this year. Iceland is an attractive place for Bitcoin data centers to build because almost 100 percent of its energy comes from renewable sources.

Sigurbergsson noted: "What we're seeing now is ... you can nearly call it exponential growth, I think, in the [energy] consumption of data centres".

Iceland is one of the best places on Earth to mine Bitcoin, thanks in part to its cold climate, which naturally helps keep hardware from overheating and cuts down on costs associated with air condition and cooling systems.

He added: "I don't see it stopping quite yet".

By contrast, he estimated that Iceland's homes use around 700 gigawatt hours every year.

According to experts, there are no grounds to predict any decline of interest of foreign companies in establishing their data centres in Iceland.

Helmut Rauth, who oversees the operation at a large Bitcoin mining company based in Iceland called Genesis Mining, was quoted by the Associated Press as saying that: "What we [cryptocurrency miners] are doing here is like gold mining".

It has previously been reported that the electricity demand of the world's total combined Bitcoin mining operations may now exceed the energy use of the Republic of Ireland, though this calculation may not be entirely accurate.

The cryptocurrency mining's new growth in the island nation has prompted a lawmaker for Iceland's Pirate Party, Smari McCarthy, to propose taxing the profits of the sector.

"Under normal circumstances, companies that are creating value in Iceland pay a certain amount of tax to the government", McCarthy explained.

The Pirate Party now holds 6 seats out of 63 in the Althing, Iceland's parliament, meaning that the party alone is unlikely to succeed in pursuing any kind of bitcoin mining tax on its own.

Now one of the most popular destinations for bitcoin mining could be facing the same problem as large cryptocurrency miners pile in to take advantage of the island's abundant geothermal and hydroelectric power plants.

Leave Your Comment

Leave Your Comment


Latest News

Breaking News



Recommended

Ravens-Bears to meet in Hall of Fame Game on Aug. 2

The early exhibition game means the Bears potentially could report to training camp July 18 and begin practicing July 19. He was selected All-Pro five times, voted to eight Pro Bowls and named to the NFL All-Decade Team of the 2000s.

U.S. expenditures in Middle East have been 'a mistake'

Trump's pivot upset Palestinians who seek the city's Israeli-annexed eastern sector as a capital. The announcement also riled US allies in the Middle East like Jordan and Turkey.

Falling trees and downed power poles hinder Tonga's Gita relief effort

Gita had pummelled Samoa and American Samoa, about 900km to the northeast, over the weekend, flooding the Samoan capital, Apia. The Tongan government declared a state of emergency on Monday, Feb. 12 and advised the public to stay off the roads.

Russian mercenaries killed by USA troops in Syria gun battle

Russian liberal presidential candidate Grigory Yavlinsky was one of many voices urging the Kremlin to come clean on the affair. US Defence Secretary Jim Mattis played down the incident, saying: "This could just be a local couple of guys doing something".

Qualcomm Snapdragon X24 LTE modem sampling started

That's a lot of jargon, but here's the key takeaway: the X24 can sustain high peak download speeds even on congested networks. In the uplink, the Snapdragon X24 LTE supports Category 20 upload speeds with 3×20 MHz CA and up to 256-QAM.

Champions League: Harry Kane lauds Tottenham for showing character

Seven years ago, Harry Redknapp's side found themselves a goal down with 10 men after 15 minutes at the Bernabeu. His opposite number Massimiliano Allegri said his side had been taken aback by Tottenham's riposte.

Mercedes Maybach S-class facelift revealed

The two twin scroll turbos are mounted within the "V" of the engine block which, among other things, helps minimize turbo lag. Now, though, the brand has announced a successor to the previous G's most ridiculous incarnation - the brutish AMG G 63.

New York City Bomber Is Sentenced To Life In Prison

Earlier that day, he had placed a bomb in a garbage can at the finish line of a US Marine Corps charity race in Seaside Park, N.J. Rahimi, 30, did not express remorse for his crime, the BBC reported , but told the court he did not "harbor hate for anyone".

Decision on Honda Classic depends on soreness, says Tiger Woods

During that time away, when even Woods wasn't sure about his future in golf, he became more accessible to players. The PGA Tour heads to the Riviera Country Club in California this weekend for the Genesis Open .

India register first-ever ODI Series win in South Africa

Overall, Kohli is placed 16th in the world with South Africa's AB de Villiers just ahead of him with 9515 runs in 226 ODIs. Hashim Amla's 71 and Heinrich Klaasen's 39 were the only takeaways for the hosts, soon after which they collapsed for 201.