Energy Demand In Iceland This Year For Mining Bitcoin May Surpass Household Demand
For Iceland, the cryptocurrency mania has gone too far, as the country may face energy crises or energy shortages as the bitcoin mining companies will probably consume more energy than the previous year. This could overshadow the energy required to power all residences and office buildings in Iceland, which is huge for a small nation with a total population of just under 3.5 lakh.
According to an estimate by the Icelandic energy company HS Orka, this year it is estimated that all bitcoin mining tools consume 840 megawatts of electricity, which is much higher than the annual demand of 700 megawatts of residences in Iceland.
Iceland is a paradise for bitcoin miners, since it offers very cheap electricity that is mostly generated from renewable sources. This huge increase in energy consumption by bitcoin miners had not been predicted four months ago, but the surreal gain in value has triggered the demand, according to the energy company. Now, few government officials question the value of such operations.
Smari McCarthy, a member of the Pirate Party of Iceland, told the press:
“That can not be good, cryptocurrency mining requires almost no personnel, very little in capital investments and, in general, does not leave taxes … The value of the Iceland / value generated relationship is practically zero: closer to zero The higher the value of cryptocurrencies, we are spending dozens or maybe hundreds of megawatts producing something that has no tangible existence or real use for humans outside the realm of financial speculation. ”
While others are concerned about the risk it represents for traditional financial institutions in Iceland and also for the environmental front.
But for cryptography enthusiasts and people who are associated with mining, they consider that Bitcoin is subject to environmental taxes. They claim that the energy consumed in Bitcoin mining is far less than the proportional energy required to complete a credit card transaction or even an Internet investigation. Genesis Mining operations manager Helmut said: “Cryptocurrencies have the same global impact, what we are doing here is like gold mining, we are extracting on a large scale and extracting gold from people.”