Iceland has become one of the leading countries in Bitcoin mining due to its abundance of renewable energy. According to a person associated with the Hashrate Index, Iceland is now one of Europe’s last Bitcoin mining refuges, and it has become a leader in the global hash rate production, consuming around 120 megawatts of electricity, making it the biggest hash rate producer per capita.
Thanks to its cheap electricity and entrepreneurial locals, Iceland was one of the first countries outside China to see industrial-scale Bitcoin mining emerge. With Iceland powered by volcanoes and waterfalls, the country generates almost double the electricity of the second country on the list, Norway, a powerhouse for Bitcoin mining and Europe’s largest mining hub. In fact, the two nations are the only two in the world fully powered by renewable energy.
This stranded geothermal and hydro energy makes electricity prices extremely cheap in Iceland, among the cheapest in the world. However, miners have reported that accessing energy allocations for new data centers is getting harder, which means that the growth potential will likely remain at current levels for the foreseeable future.
Unlike China and the United States, Iceland is regarded as one of the most politically stable nations in the world, making it the most stable Bitcoin mining jurisdiction globally.
The increase in BTC prices has improved mining profitability by 35% since the beginning of 2023, and with the network hash rate hitting an all-time high of 318 exahashes per second (EH/s), Bitcoin mining continues to gain momentum worldwide.
Iceland’s rise as a Bitcoin mining hub has not gone unnoticed. A growing number of Bitcoin mining companies are setting up operations in the country, taking advantage of Iceland’s abundant and cheap renewable energy. Bitfury, Hive Blockchain, Genesis Mining, and several other domestic firms are among the major international companies with operations in Iceland.
The Icelandic government has also taken a favorable stance towards Bitcoin mining, recognizing the industry’s potential to bring in foreign investment and create jobs. However, the government has also expressed concern over the environmental impact of Bitcoin mining, and there have been calls for the industry to be more sustainable and use more energy-efficient technology.
In conclusion, Iceland’s abundance of renewable energy and favorable business environment have made it one of the leading countries in Bitcoin mining. With Bitcoin mining becoming more competitive, Iceland’s stable political climate and renewable energy sources are likely to attract more Bitcoin miners and drive growth in the industry.