Home / Politics / News / Iceland to use more electricity to mine bitcoin than to power houses

Iceland to use more electricity to mine bitcoin than to power houses



IcelandLydur Skulason/Flickr, CC
BY


  • Iceland will likely use more electricity in the next
    year to mine bitcoin than it uses to power every single home in
    the country. 
  • Bitcoin mining is booming in Iceland, and energy
    providers are worried they won’t be able to power new
    mining companies.
  • Iceland’s cool weather, cheap energy and super-fast
    networks have made the country a popular home for bitcoin
    mining.
  • Members of the government have proposed taxing
    profits made by bitcoin mining companies. 

Iceland may soon use more electricity to mine bitcoin than it
uses to power every home, according to an Icelandic energy
expert. 

The energy used by Iceland’s bitcoin mining market is
experiencing “exponential growth,” and data centers may use more
energy than all of the country’s homes in 2018, Johann
Snorri Sigurbergsson from Icelandic energy company HS Orka
told the BBC.

Sigurbergsson also said HR Orka “won’t have enough energy”
to power numerous new data centers that have been
proposed.


Bitcoin mining
 occurs when 
computers verify
existing bitcoin transactions by solving complex mathematical
problems, and then receive bitcoin as a reward.

Sigurbergsson told the BBC he estimates Iceland’s bitcoin mining
tools currently use around 840 gigawatt hours of electricity to
power computers and cooling systems each year, while most of the
country’s homes use around 700 gigawatt hours.

Iceland is a popular crypto mining destination

Bitcoin mining
thrives in Iceland
, where energy is cheap, and internet
connections use
super fast fiber-optic networks
.

Additionally, Iceland’s cold climate plays an important role in
ensuring crypto utilities don’t overheat. Mining hardware
generates large amounts of heat, and Iceland’s year-round cool
weather saves companies from additional temperature control
costs.

But the centers still use huge amounts of electricity.

Genesis Mining, one of the largest crypto miners in
Iceland, has opened three mining facilities in Iceland and in
2016 
CEO Marco Streng speculated the
company
 may be one of the biggest single users of
power in the country. 

The rise of crypto mining in the country has prompted government
members to consider steps to tax the industry.

“Under normal circumstances, companies that are creating
value in Iceland pay a certain amount of tax to the government,”
Smari McCarthy, a member of Iceland’s Pirate Party, told the
Associated Press
. “These companies are not doing that, and we
might want to ask ourselves whether they should.”

Get the latest Bitcoin price here.>>


Source link

HostGator Web Hosting

About admin

Check Also

Florida school shooter Nikolas Cruz hated Jews, Mexicans, gays, black people

Nikolas Cruz (center) appears via video monitor with Melisa McNeill (right), his public defender, at …

Leave a Reply

Your email address will not be published. Required fields are marked *