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Iceland is Revolutionizing Crypto; here's How It's Becoming Bitcoin's Powerhouse

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By Augustine Mbam - - 5 Mins Read
Bitcoin in a GPU mine component
Credit: Brian Wangenheim via Unsplash

Iceland is set to become the powerhouse of the apex cryptocurrency, Bitcoin, after its recent exploits with Bitcoin mining. According to information provided by the Hashrate Index, Iceland's bitcoin mining has become one of the major strongholds for mining in the industry. The country has overtaken other locations that previously held that title worldwide. Because of the abundance of renewable energy in the country, the rate of the mining of Bitcoin in Iceland has increased sporadically. 

Mining Bitcoin in Iceland has become easy for miners as the country is blessed with loads of renewable energy, such as hydro and geothermal. According to data from Bitcoin mining researcher Jaran Mellerud, Iceland has become the biggest hash rate producer per capita. This is no surprise, as the country is familiar with mining. 

In a tweet, Jaran Mellerud explained the Iceland bitcoin mining situation. He said, "Thanks to its cheap electricity and entrepreneurial locals, it was one of the first countries outside China to see industrial-scale Bitcoin mining emerge." Jaran Mellerud noted that Iceland has a long history of mining Bitcoin and other cryptocurrencies." Iceland has a long history of bitcoin mining. Thanks to its cheap electricity and entrepreneurial locals, it was one of the first countries outside China to see industrial-scale bitcoin mining emerge," Jaran Mellerud added. 

A Long History of Bitcoin mining 

Iceland's bitcoin mining has been happening in the island nation for a long time. This is partly because of the island nation's cheap electricity and other forms of energy. According to Mellerud's estimates, the mining of Bitcoin in the country consumes around 120 megawatts of electricity. This is a very low electricity consumption compared to other countries that mine Bitcoin. 

With the ongoing mining in Iceland, their BTC mines contribute a global hash rate of 1.3%. Looking at the figures, it might seem very small. But comparing Iceland's population of less than 400,000 and the figure above makes the country the biggest hash rate producer per capita.

Jaran Mellerud illustrated the long history of mining in Iceland when he mentioned the numerous companies involved in mining Bitcoin in the country. "Domestic companies involved in mining in Iceland include Greenblocks, Advania Data Centers, and Borealis Data Center. In addition, many international players currently operate or were previously there, like Genesis Mining, Bitfury, Hive Blockchain, and Startmining," Jaran Mellerud said on Twitter. 

Powered by Volcanoes 

With the rate at which Iceland is mining Bitcoin, one of the contributing factors to its growth is that the island nation is filled with volcanoes and waterfalls. The energy generated from these two sources makes it easier and cheaper for miners to mine a lot of Bitcoin. 

Mellerud noted this in his tweet by saying, "Iceland is powered by volcanoes and waterfalls. The mountainous geography, wet climate, and volcanic geology provide excellent conditions both for hydro and geothermal energy." 

Because of the natural energy sources around Iceland, they have the highest electricity produced per capita. With less than 400,000 people, citizens have more than enough energy for many things, including mining Bitcoin.