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Tuesday, February 13, 2018

Iceland: Expansion of Bitcoin Mining Offers Opportunities for Geothermal Energy

How Iceland became the bitcoin miners’ paradise (The Guardian)

The island nation is the first to use more electricity on mining crypto-curriencies than on its households – thanks in part to its magma-fuelled power plants.

Bitcoin’s price may be down more than 50% from its highs in December, but no one has told Iceland, where the cryptocurrency and its offspring are reshaping the economy.

According to Johann Snorri Sigurbergsson, an employee of the energy company HS Orka, Icelandic cryptocurrency “mining” is likely to double its energy consumption to about 100 megawatts this year. That is more than households use in the nation of 340,000 people, according to the national energy authority.

Why is Iceland so popular? The answer is simple: location, location and volcanoes. Volcanoes provide Iceland with a cheap and abundant form of renewable energy. Geothermal and hydroelectric plants abound on the island, driving down the wholesale cost of power, which lets bitcoin miners make higher profits as they run their computers 24/7, 365 days a year.

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From the Global Geothermal News archives:
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