Bitcoin mining: Iceland cancels energy allocation to new miners

TL; DR breakdown

  • Iceland Cancels Power Distribution for New Bitcoin Mining Hubs
  • Landsvirkyun adds aluminum industry to the list
  • Iceland supplies cheap energy to bitcoin mining companies

Bitcoin mining consumes a huge amount of energy, putting a strain on the electricity grid of different countries. Some countries were forced to remove these actors from their places, although this was helpful. In an effort to liquidate Iceland’s new Bitcoin mining centers, the country has announced that it will no longer offer them electricity to operate.

Landsvirkyun adds aluminum industry to the list

In a full statement, Iceland’s energy company Landsvirkjun said it will stop supplying electricity to certain industries across the country. Further examination of the statement reveals that aluminum smelters also top the list, besides Bitcoin mining centers. In a statement, one company official said the measure was taken to deal with the consequences of their activities, which caused the problems.

Some of the problems facing the country include problems related to the country’s electricity grid and the declining level of the hydroelectric complex. The official statement also mentions that some of these industries are looking for energy in neighboring countries.

Iceland has become a popular destination due to the abundance of energy derived from geothermal sources. This energy is then used to create cheap renewable energy that can be used by various sectors of the economy. In a statement, the company mentioned that it will no longer conduct Bitcoin mining operations from now on.

Iceland provides cheap energy to Bitcoin mining centers

Iceland boasts of hosting many bitcoin mining companies, with Hive, Genesis and Bitfury among the top three on the list. Over the past ten years, Bitcoin mining centers have always declared their commitment to mining in an environmentally friendly manner. Cloud hashing was one of the first companies to enter the country in 2013, moving at least 100 miners.

Hydrominer GmbH, a company based in Austria, also entered the country in 2017. Before entering the country, Hydrominer completed an ICO, which resulted in the company receiving $ 2.8 million used to buy miners. The aluminum industry felt the impact of this order after the metal price rose by about 1.1%.

Countries have started adopting the green blockchain initiative, which was discussed at the COP26 conference. The conference launched an initiative under which the United Citizens Organization will use blockchain to help change the climate.