Late last year, it was reported that cryptocurrency miners are heading to Iceland due to its vast amounts of renewable energy. However, the Icelandic government was ready to tax those who moved there, and miners don’t really seem to care.
Capitalizing on the movement
Part of the tax reasonings were due to miners’ high electricity usage. However, the government believes the mass exodus is bad for its environment as well. For example, Iceland has a beautiful countryside that goes unmatched by the rest of the world. But, tons of these miners are moving to fill in the space, reports Aljazeera.
On top of this, the environment here is a space for geothermal and hydroelectric power generation, which is healthier, cheaper, and faster than traditional electricity. The miners want to harness this and use it for cryptocurrency. To be fair, this healthier alternative to normal electricity is more eco-friendly. That and the temperatures in Iceland are much lower than other places, resulting in natural cooling for mining rigs.
However, as the publication reports, renewable energy isn’t always the best solution for this kind of thing.
Looking deeper into the problem
Creating such energy isn’t necessarily a clean process. To start, engineers must create dams to harness hydroelectric power, and geothermal stations can only be placed on top of hot springs. That’s where the heat, which is then converted to power, is pulled from. Both of these things affect the natural order of Iceland’s landscapes, and permanently ruin it in the long run.
On top of this, mining isn’t nearly as profitable as it once was. Because of that, miners are vying for whatever they can get to top the competition. This may mean slightly cheaper prices and slightly less cooling options to beat out the rest. At least the country of Iceland will benefit financially from the rush.[via CCN]