Iceland, the 340,000 populated island in the middle of the Atlantic ocean, will soon use more energy for Bitcoin mining than for heating their own homes. Given the average temperature in Iceland, that is a quite amazing feat.
This is not the first time the Icelanders are involved in an economic hype of course. Back in 2007, the three Icelandic commercial banks that had before never operated outside of Iceland, had borrowed 120 billion dollars (ten times the size the Iceland’s economy) to buy up market swaps, and we all know what happened after.
Related coverage: <a href="https://thegoldwater.com/news/17880-Bitcoin-Finds-Floor-Whilst-ECB-Clamps-Down-On-Crypto">Bitcoin Finds Floor Whilst ECB Clamps Down On Crypto</a>.
Now, with China cracking down on Crypto mining and urging local factories to close down, the market has to move elsewhere. Iceland, a remote island with natural thermo-energy and its own currency, seems like a winning combination.
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Iceland set to use more energy mining Bitcoin than powering homes <a href="https://t.co/lCFtZGS6JW">https://t.co/lCFtZGS6JW</a> <a href="https://t.co/aS5JQqlDQb">pic.twitter.com/aS5JQqlDQb</a></p>— Telegraph News (@TelegraphNews) <a href="https://twitter.com/TelegraphNews/status/963324444943949824?ref_src=twsrc%5Etfw">February 13, 2018</a></blockquote>
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Mr Johann Snorri Sigurbergsson, an HS Orka (the local energy provider) spokesman said: “What we’re seeing now is, you can almost call it exponential growth, I think, in the energy consumption of data centers.”
Related coverage: <a href="https://thegoldwater.com/news/17969-Stocks-In-Global-Rout-While-Crypto-Steadies">Stocks In Global Rout While Crypto Steadies</a>.
"I'm getting a lot of calls, visits from potential investors or companies wanting to build data centres in Iceland."
HS Orka thus estimates that the enlarged Bitcoin mining operations will now use around 840 gigawatt hours of electricity in order to supply data centre computers and cooling systems.
In comparison, Iceland’s population of 340,000 people use roughly 700 GWh of electricity in their homes per year for lighting and to cook food.
At the time of writing, Bitcoin was trading at $8,440.
Iceland has mostly GEOTHERMAL & Hydro-power.
In Iceland, geothermal accounts for 85% +/- heating and and hot water requirements of all buildings.
According several sources 73+% of the nation’s electricity is generated by hydro power.
So I see a splitting of a Technical Hair …
But still I am hard pressed to accept Bitcoin uses 840 gigawatt hours in the way it is presented in comparison.