Iceland was attractive to bitcoin miners for many years, through the renewable energy of the country with hydro – and geothermal power plants. However, now the island country inhibits the cryptocurrency industry, and seeks to prevent the acceleration of energy demand.
Last year Icelandic lawmakers have drafted a law which provides for the taxation of mining due to the huge consumption of electricity. Now legislators have joined the movement within the country, which in mining see a potential environmental hazard.
Bitcoin miners are increasingly seen as an existential threat for outstanding and largely unspoilt countryside of Iceland, reports Al-Jazeera. A coalition of environmentalists, researchers and activists opposed to growth that recently was advertised as the future that creates new jobs. Despite this, bitcoin miners are not showing signs of slowing down.
The unique location of Iceland in the North Atlantic is the source of geothermal activity, makes the generation of geothermal energy is extremely easy and cheap compared to world prices for energy. Crypto miners have identified the Scandinavian region of Europe, as a “gold mine” for bitcoin mining. In addition to cheap energy, attractive natural low temperature of the country. This accelerates and facilitates the cooling of the mining installations, which further increases the profit in a small margin.
For many years discussions about the harm caused to ecology through cryptocurrency mining, came down to the fact that the use of renewable energy for mining bitcoin eliminates concerns that mining bitcoin is ecologically unfavorable due to the size of our carbon footprint.
However, Icelandic environmentalists point out that the growth in demand for electricity for mining activities leads to the expansion of geothermal and hydropower.
As they point out, the process of creating clean energy is not so green. First, the construction of new hydropower plants irrevocably changes the landscape and terrain, destroying pristine countryside and the changing nature of rivers and waterfalls. Geothermal power plants must be built in areas of natural hot springs to get access to the heat emanating from the earth’s core. It is also constantly changing the pristine landscape of Iceland.
Ecologist Gudbjartsson Tomas (Tomas Gudbartsson) says:
Iceland still has one of the most unspoilt territories in Europe. We just destroy these areas, if you continue in the same spirit.
The problem for Icelandic environmentalists is that the extension captainnemo industry will grow even faster than before. First of all, consistently low prices for the cryptocurrency market continue to make mining a very marginal business. Miners must look for more benefits to be competitive and profitable. Cheap energy Iceland, and cold temperatures provide the perfect combination for miners, who seek to extract maximum performance from their plants by investing minimum investment.
Moreover, after a weak, but fairly steady recovery of the price of the cryptocurrency from the beginning until today, the popularity of captainganj industry is growing. This is further compounded by the recent decision of the Chinese government on the cessation of mining in areas with cheap electricity, such as Sichuan province. Many of the miners will move to Iceland and neighbouring countries.
Iceland is not happy with Chinese miner immigrants, besides that they will increase energy needs and may lead to the deterioration of the environment will do little for the local economy.