Iceland Crypto Miners Are Sucking Up A Lot of Electricity – Report

Investing, News | February 13, 2018 By:

Iceland cryptocurrency mania is in full swing, so much so that the regional energy company reports that electricity used by bitcoin miners will outstrip residential consumption this year.

Officials are concerned by this, and warn they don’t have sufficient capacity to meet the mining company needs.

 “If all these projects are realized, we won’t have enough energy for it,” said Johann Snorri Sigurbergsson, a spokesman for Icelandic energy firm HS Orka, speaking to the BBC.

He said that bitcoin mining will require about 840 gigawatt hours of electricity this year. Iceland’s residential usage is about 700 gigawatt hours per year.

Beyond its obsession with finance – Iceland was a center of the global derivatives meltdown in 2008, a catastrophe which saw some local bankers jailed – the tiny country of 340,000 people is drawing cryptocurrency companies because of its cheap energy. Thanks to a rich natural resource of geothermal and wind energy, Iceland is far less costly than other countries for the massive power needs of mining companies.

The Ieeland government is starting to examine the inflow of crypto mining companies. High on the agenda is upping their tax rate.