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Iceland Will Spend More Power In Mining Than Powering Its Homes

Feb 14, 2018 Posted /  2544 Views

Iceland Will Spend More Power In Mining Than Powering Its Homes

Bitcoins prices were downward sloping in the beginning of 2018 but this has not affected miners craze which is consuming a lot of power in the mining process. As 21 million of Bitcoins can be mined and as per sources only 4.2 million coins are left which has made miners to work even more to create one and get benefitted. The mining process involves huge algorithm calculation on distributive ledger technology which demands a huge amount of power.

China has already banned mining process as it sucks a lot of power. Due to these circumstances, Miners are finding a destination which could offer them cheap electricity and other favorable environment required for creating Bitcoins. Miners seem to pile up at Iceland as the place has an abundance of geothermal and hydroelectric power plants.

In an interview with BBC, a spokesperson of Island’s energy firm,  Johann Snorri Sigurbergsson stated that the power company has estimated that crypto mining process will consume around 840 gigawatt-hours which are even more than the one-year consumption of electricity by entire islands population. The region comprises of 3,40,000 people who roughly use 700 GWh in an entire year.

“What we’re seeing now is…you can almost call it exponential growth, I think, in the [energy] consumption of data centers” - Johann Snorri Sigurbergsson

Even contributing a huge amount of power for mining process, the island will not face any shortage regarding that. In 2015, Iceland produced 18,700 GWh in a year. A major part of generated electricity is used by industrialists for aluminum smelting or metal-alloy production. As per sources, island’s power creation is conducted through renewable resources – 70% through hydropower plants and 30% through geothermal power plants.

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To this Johann, Snorri Sigurbergsson stated that if all projects are kept in consideration then the island can account shortage of power as it will not be possible to build new crypto-mining power plants.

In the southern peninsula of the island, the serene coastal town of Keflavik witnessed a boom as it converted into an international hub for crypto mining. Huge constructions took place on the outskirts of the town which baffled local fishermen about the happenings. By setting up a crypto-mining plant at the edge of the arctic circle, the miners will get benefits such as natural cooling for computer servers and cheap electricity.

"What we are doing here is like gold mining, We are mining on a large scale and getting the gold out to the people." - Helmut Rauth

The operation manager of Genesis Mining, Helmut Rauth believes that virtual tokens have the same global impact as credit cards transactions and internet research in the context of energy consumption. The company moved from Germany to Iceland in 2014 when the value of Bitcoins touched $1,000 USD price range.  


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Tags: Mining virtual tokens

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