BlocksInform
Another line of defence that miners in the small European country have against the increase in electricity prices is the long-term fixed price electricity contracts.. Many nations have become the miners' new ports. Europe has become the largest per capita hash producer in the world. Due to low power, Iceland is one of the first countries to see bitcoin mining on an industrial scale.
According to Bitcoin mining researcher Jaran Mellerud, the country’s entrepreneurial locals can also be attributed to the growth of the sector. The Icelandic bitcoins extraction industry is estimated to consume about 120 mw, equivalent to a share of 1.3% of the world's hash production. With only 370,000 people living in Iceland, it is the largest producer of hash per capita.
Is there anything special about Iceland?
There are other countries where cryptominers can get cheaper power. In fact, Iceland has always been a little bit more expensive than other northern regions like northern Norway and northern Sweden. What's so lucrative about Iceland?
A crucial benefit, as highlighted by mellerud, is the fact that the Arctic nation's electrical system is totally isolated from the rest of the world. That obviously protects actors from the inflation of electricity prices around the world. On top of everything else, inter-linkages between Iceland and mainland Europe are non-existent, that prevents the first one from being exposed to the price of fuel because all his electricity comes from renewable sources.
Miners have been operating in the area for almost a decade with no significant problems with the regulatory oversight bodies, possibly by making the most stable jurisdiction in the world of bitcoin extraction.
Mellerud said,
“El Salvador may have gotten the most attention in the Bitcoin community from its volcano mining project, but the Icelanders have quietly been volcano mining at a much larger scale for several years.”
Second Line of Defense
Iceland’s electricity supply is becoming scarcer over the past few years. Icelanders have been quietly developing volcanoes on a much bigger scale for several years." Power supply to the second line of defence has been declining in recent years. New power generation also seems to have stagnated.
As a result, it became almost impossible to allocate electricity to the new data centres. This can be corrected by the construction of new generating stations. However, development projects are very small. Iceland is fueled by volcanoes and waterfalls, making it the richest country in the world in terms of electricity.
Iceland is served by volcanoes and waterfalls, making it the richest country in the world in terms of electricity.
