Energy Consumption Surge
Iceland has panned out as the ideal location to mine bitcoins. It is facilitated by the cold and relatively cheap electricity in the region. This year alon, the usage in crypto mining will exceed domestic usage acoording to sources.
The was an unexpected surge as a consequence of the bitcoin value skyrocketing. “Just today, I came from a meeting with a mining company seeking to buy 18 megawatts,” commented an official from Hitaveita Sudurnesja.
“Energy consumption on mining would effectively double this year to around 100 megawatts,” reveal reports. The National Energy Authority of Iceland puts its usage as more than that of 340,000 households.
Mining has over the years turned out to be a lucrative business opportunity. However not everyone is thrilled about Iceland’s economy being dominated by mining. Pirate Party legislator comments, “We are spending tens or maybe hundreds of megawatts on producing something that has no tangible existence and no real use for humans outside the realm of financial speculation. That can’t be good.” It must be noted that Pirate Party was once pro-bitcoin.
Iceland’s precarious view on crypto can be forgiven in the light of the 2008 financial crisis that hit the nation hard. The country lost jobs, the national debt balloned and its top 3 national banks collapsed. By estimates, it was probably the biggest economic catastrophe in history relative to its size.
Also, many speculators have soured over bitcoins noting its volatility and lack of good consumer experience in terms of basic transaction owing to the fees and processing time required. However, as the economy of Iceland has bounced back, it might not be wise to turn away the future of money.