Latest Blockchain news from around the world

Iceland’s abundance of renewable power boosts Bitcoin hashrate


With its huge renewable power sources, Iceland has emerged as a distinguished vacation spot for Bitcoin mining.

Nevertheless, based on new analysis by one of many trade’s main watchdogs, the nation has maxed out at round 120 MW of power for Bitcoin mining, which makes up round 1.3% of the worldwide Bitcoin hash fee.

What makes Iceland such a mining powerhouse?

Due to Iceland’s  huge hydro and geothermal power sources, the nation has managed to dedicate 120 megawatts of electrical energy to Bitcoin mining, which accounts for just one.3% of the worldwide hash fee. However with a inhabitants of solely 370,000, Iceland is the world’s largest producer of hash fee per capita.

Iceland’s outsized power dominance

With an abundance of electrical energy sources, Iceland is the world’s most electricity-rich nation, producing almost twice as a lot electrical energy per capita as Norway, the second nation on the checklist.

TOp 10 countries of electricity generated by per capita 2021
(Supply: Luxor and Hashrate Index)

Iceland and Norway are the one two international locations worldwide that rely completely on renewable power sources for his or her energy wants.

Iceland: Electricity Production by Source in 2020
(Supply: Hashrate Index and Luxor)

The latest surge in BTC costs has boosted mining profitability by 35% because the begin of 2023. Because the community hash fee reached a brand new excessive of 318 exahashes per second (EH/s), Bitcoin mining has gained momentum not solely in Iceland, however worldwide.

Political stability

An enormous a part of what makes Iceland’s attractiveness as a mining hub is that it’s broadly thought to be one of the politically secure international locations globally.

“Home firms concerned in mining in Iceland embody Greenblocks, Advania Information Facilities, and Borealis Information Middle. As well as, many worldwide gamers presently function or have been beforehand there, like Genesis Mining, Bitfury, Hive Blockchain, and Startmining.”

The Icelandic authorities is supportive of Bitcoin mining, recognizing its potential to draw international funding and create employment alternatives.

Nevertheless, the federal government has additionally expressed concern in regards to the environmental affect of Bitcoin mining and has urged the trade to be extra sustainable by adopting extra energy-efficient know-how.

Nonetheless, among the most important gamers within the Bitcoin mining trade in Iceland have been working for 10 years, largely with none important subject from authorities.

Iceland is hitting mining limitations

The elements that make Iceland such an attractive surroundings for Bitcoin miners have additionally had an affect on provide/demand.

“Iceland’s electrical energy provide may need appeared infinite a number of years in the past, but it surely has steadily develop into scarcer over the previous few years. Icelandic miners report that it’s almost unimaginable to get electrical energy allocation for brand new information facilities.”

Because of this the trade has restricted progress potential in Iceland and can seemingly stay and the 120 MW yr for “the foreseeable future.”


Leave A Reply

Your email address will not be published.