• Iceland has become the world’s leading hash rate producer per capita.
• Environmental concerns are making Iceland’s government turn away BTC miners.
• The European country has vast amounts of renewable energy, making it one of Europe’s last Bitcoin mining havens.
Overview of Bitcoin Mining in Iceland
Iceland is the world’s largest hash rate producer per capita and one of Europe’s last Bitcoin mining havens. According to Hashrate Index, the country consumes around 120 megawatts of electricity for its BTC mining industry, equating to a global hash rate of 1.3%. Its vast amounts of stranded hydro and geothermal energy make it an ideal location for cryptocurrency miners.
Concerns Over Environmental Issues
Despite its advantageous location, environmental concerns have caused the Icelandic government to turn away BTC miners. In December 2021, Landsvirkjun reduced the amount of power it will provide to certain industries due to low hydro-reservoir levels and accessing energy from an external supplier. This makes it difficult for cryptocurrency miners to obtain new energy allocations in Iceland and limits the potential for growth in this sector.
Companies Relocating To Iceland
Despite these issues, some companies are still relocating their operations to Iceland such as Cloud Hashing and HydroMiner GmbH. Cloud Hashing moved 100 miners there in 2013 while HydroMiner raised $2.8 million in its ICO to install rigs directly at Icelandic power plants. The network hash rate has also reached an all-time high this week at 318 exahashes per second (EH/s).
Iceland remains one of Europe’s last Bitcoin mining havens despite its government turning away BTC miners due to environmental concerns. Companies like Cloud Hashing and HydroMiner GmbH have relocated part or all their operations there due to its vast amounts of renewable energy resources available on the island nation. The network hash rate has also reached record highs this week which suggests that demand remains strong amongst cryptocurrency miners despite limitations imposed by the Icelandic government