Iceland: Crypto Mining Companies Will Consume More Energy Than Households In 2018

Authored by Molly Jane Zuckerman via CoinTelegraph.com,

Iceland is set to consume more energy for crypto mining than for household use this year, the Associated Press reports Monday, Feb. 12. The naturally cold climate and access to renewable energy are listed as the primary reasons for the influx of crypto mining companies to the Nordic island nation.

Icelandic businessman Johan Snorri Sigurbergsson of the energy company Hitaveita Sudurnesja predicts a doubling of the country’s cryptocurrency mining energy consumption to 100 megawatts this year, more energy than the 340,000 residents of Iceland will consume for personal use in that time.

Sigurbergsson told the AP that he “could not have predicted this trend” four months ago, “- but then Bitcoin skyrocketed.” He reports that he had just met with a mining company wanting to buy 18 megawatts.

Bitcoin mining hardware requires a large amount of energy to perform the calculations to find “hashes,” which then gives the miner a Bitcoin reward. Alternatives to the current energy-consumption-heavy method of mining have been proposed, like using a Proof-of Stake system instead of Proof-of Work, or using renewable energy to power mining computers.

Mining sites in Iceland naturally have the opportunity to produce less pollution than the coal-burning mining sites located in China, for they have access to geothermal and hydroelectric power plants, both cheaper and more environmentally friendly alternatives to coal.

Keflavik, a coastal town on the southern peninsula of Iceland, is home to three of the biggest Bitcoin mining sites in the country. These mining “farms” have walls that are open to the elements, which allows cold wind to naturally cool down the mining hardware.

In the US, when mining companies began moving en masse to Washington to take advantage of the state’s cheaper electricity, the data infrastructure of one small county became quickly overloaded and now requires an addition of 100 megawatts.

Smari McCarthy of Iceland's Pirate Party, an anti-establishment political party that entered Iceland’s Parliament after the 2008 financial crash, brought up the possibility of taxing any profits made by Bitcoin mining, considering that a mining company falls under the category of “creating value” within the country.

Regardless of the potential profits, McCarthy is unsure about what Bitcoin mining can bring to Iceland, reports the AP:

"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."

In December 2016, when Iceland was rallying to form an alternative coalition that included the Pirate Party after inconclusive election results, the Pirate Party’s founder referred to their platform as the most “favorable” for Bitcoin’s path to legality in the country.

Comments

Herp and Derp Tue, 02/13/2018 - 05:10 Permalink

Each S9 now makes about $7/day...  ROI if bought directly from Bitmain and shipped today is at 1.5 years.  Nothing else pays as well outside the Blake miners that will soon crash to nothing.

Good luck mining!

HenryKissinger… LSD - Lower Sl… Tue, 02/13/2018 - 08:35 Permalink

didn't Davos 2018 order the destruction of bitcoin ?

"Every digital payment service should abide by KYC and cooperate in all law enforcement initiatives regarding cybercrime conspiracy, or it should be shut down. .. Virtual currencies who refuse to know their customers or freeze accounts of those engaged in criminal conspiracies should be subject to Treasury Executive Office for Asset Forfeiture (TEOAF)." DAVOS 2018

https://www.weforum.org/agenda/2017/12/how-to-civilize-the-dark-web-eco…

In reply to by LSD - Lower Sl…

thunderchief Tue, 02/13/2018 - 05:22 Permalink

I am waiting patiently for the day the world wakes up from the total insanity of mining fantasy fluff while the banks and governments stuff the real hard stuff up their paper ponzi arse holes.

Mining cryptos will go down as hard as these bogus fed propped markets.

 

silvermail Tue, 02/13/2018 - 05:24 Permalink

It's amazing that green activists around the world, blinded, deafened and numb in everything related to the barbarous mining of crypto-currency.

BraceforImpact Tue, 02/13/2018 - 06:19 Permalink

We're literally a third world planet lol

 

Trillions on war, using all our energy to literally provide nothing...

 

In a stupid society,  stupidity succeeds.

 

Well, off to work,  or as I like to say,  slave camp.  where I get paid in shitty fiat that is mathematically inevitable to collapse to nothing,  and they steal half of it before I even get to realize my own labor.

 

What a shit hole lolololololol

 

I'm not free,  my kids won't be free,  and it's only going to get worse.

 

Whatever.

 

Brace for impact.

EddieLomax BraceforImpact Tue, 02/13/2018 - 06:41 Permalink

Yep.  So many times when I step outside and experience the world around me I'm impressed by the quality of beauty of that which was built 200 years ago.

But almost everything built in the last 60 years is junk, temporary crap to be torn down and rebuilt as more temporary crap, temporary objects all built with unsustainable resources, utter madness while we pour our resources into pointless projects that result in no progress and nothing longterm.

But the sheeple are worried about pollution, multiculturalism, whatever team of millionaires can kick a bag of wind between some wooden sticks the most times and other irrelevancies.  

We need a crash, a real hard crash.

In reply to by BraceforImpact

Spaced Out Tue, 02/13/2018 - 06:20 Permalink

If it's genuinely "renewable energy", what's the problem?

Edit: And even if it isn't "renewable", it's worth it if it secures the only viable means of escaping the fiat ponzi scheme.

EddieLomax Archimedes02 Tue, 02/13/2018 - 06:46 Permalink

That may well be true, but the only reason crypto is making money is due to the unintended consequences of QE.

The geniuses at the central banks thought they could banish a market crash forever if only people would never see an asset drop in value.  What they didn't realize was that the end result would inevitability be equities and bonds return near returns as all price discovery disappears.

Now ever riskier bets are made, enter the Charles Ponzi of financial instruments, it has not use, but who cares because its going up in value.

In reply to by Archimedes02

RabbitChow Tue, 02/13/2018 - 06:47 Permalink

The clarion call goes out once again -- "Bitcoin is dead; bitcoin is dead".

 

But wait, it's not dead.  Kill it again!

 

-- They stab it with their steely knives

   But they just can't kill the beast

 

And so it goes...

RabbitChow Tue, 02/13/2018 - 06:47 Permalink

The clarion call goes out once again -- "Bitcoin is dead; bitcoin is dead".

 

But wait, it's not dead.  Kill it again!

 

-- They stab it with their steely knives

   But they just can't kill the beast

 

And so it goes...

Thethingreenline Tue, 02/13/2018 - 06:47 Permalink

One measure of economic activity is electricity usage. This meets the definition, thus, crypto mining is economically productive. Quit being a loser and get into BTC now! TTGL is all in as his family is all in. We have sustained the recent storm and abc up to 22000 by fall 2018. 

 

TTGL

headhunt Tue, 02/13/2018 - 06:59 Permalink

Aside from the stupidity of doing 'math' and wasting energy in the process to create 1's and 0's as currency; what are they going to do when the Quantum Computers come on line and make a million coins in a second?