Iceland – A Popular Destination for Cryptocurrency Mining
Cryptocurrency mining activities have definitely enhanced in the most recent period of time. Numerous people became interested in mining operations, as well as companies, who searched for the perfect locations to open huge mining centers. It now seems that one of the preferred destinations for cryptocurrency mining is actually Iceland.
Why is Iceland a good place for cryptocurrency mining?
Iceland has become a preferred destination for cryptocurrency mining because the country has relatively low electricity prices and also a colder temperature, perfect for mining activities. However, this also means that the energy consumption in Iceland has increased and most likely will continue to increase this year.
The growth of mining operations in Iceland is expected to double and thus the energy consumption associated to mining operations is expected to become twice has high, as well. Some reports have claimed that in some areas, cryptocurrency mining ended up consuming more energy than all the households in the area combined.
However, not everyone is happy with the development of mining operations in Iceland. For instance, a lawmaker of the country stated that these companies do not pay taxes and this is something authorities might want to look into. The lawmaker said:
“Under normal circumstances companies that are creating value in Iceland pay a certain amount of tax to the government. These companies are not doing that and we might want to ask ourselves whether they should. 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.”
