Bitcoin energy use in Iceland set to overtake homes, says local firm

A geothermal energy plant in IcelandImage copyright
AFP

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Nearly 100% of energy in Iceland comes through renewable sources

Iceland is actually facing an “exponential” rise in Bitcoin mining in which is actually gobbling up power resources, a spokesman for Icelandic energy firm HS Orka has said.

in which year, electricity use at Bitcoin mining data centres is actually likely to exceed in which of all Iceland’s homes, according to Johann Snorri Sigurbergsson.

He said many potential customers were keen to get in on the act.

“If all these projects are realised, we won’t have enough energy for in which,” he told the BBC.

Mr Sigurbergsson’s calculations were first reported by the Associated Press.

Iceland features a smaller population, of around 340,000 people.

yet in recent years in which has seen a marked increase within the number of brand-new data centres, often built by firms wishing to tout green credentials. Nearly 100% of energy in Iceland comes through renewable sources.

Bitcoin mining refers to the work done by computers connected to the global Bitcoin network.

These computers solve complex mathematical problems – a process in which in turn validates transactions between users of the crypto-currency.

The computers in which do in which validation work receive smaller Bitcoin rewards for their trouble, creating in which a lucrative exercise, especially when done at a large scale.

‘Exponential growth’

“What we’re seeing today is actually… you can almost call in which exponential growth, I think, within the [energy] consumption of data centres,” said Mr Sigurbergsson.

He added in which he expects Bitcoin mining operations will use around 840 gigawatt hours of electricity to supply data centre computers in addition to cooling systems, for example.

He estimated in which the county’s homes, in contrast, use around 700 gigawatt hours every year.

“I don’t see in which stopping quite yet,” added Mr Sigurbergsson, referring to data centre projects.

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“I’m getting a lot of calls, visits through potential investors or companies wanting to build data centres in Iceland.”

He also said in which there are so many proposed data centres in which in which wouldn’t be possible to supply all of them.

He added in which his firm was mostly interested in dealing with companies in which were willing to commit to long-term contracts of a few years or more.

If Iceland took on all of the proposed Bitcoin mining ventures, there simply wouldn’t be enough electricity to supply them all, he added.

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HS Orka

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Johann Snorri Sigurbergsson says there is actually so much demand for Bitcoin mining data centres in Iceland in which the country wouldn’t have enough electricity to supply them all were they to be built

The crypto-currency mining industry in Iceland was recently given a boost thanks to the launch of The Moonlite Project – a large data centre where various crypto-currencies, including Bitcoin, will be mined.

in which is actually set to open later in which year in addition to will have an initial capacity of 15 megawatts, though in which is actually likely to raise within the future.

Some have questioned how beneficial the rise of the crypto-currency mining will be to Iceland.

Smari McCarthy, a member of the Icelandic parliament for the Pirate Party, tweeted: “Cryptocurrency mining requires almost no staff, very little in capital investments, in addition to mostly leaves no taxes either.

“The value to Iceland… is actually virtually zero.”

He also clarified previous reports in which quoted him as saying he was keen to tax Bitcoin mining firms.

in which has previously been reported in which the electricity demand of the globe’s total combined Bitcoin mining operations may today exceed the energy use of the Republic of Ireland, though in which calculation may not be entirely accurate.

yet as crypto-currencies rise in popularity, mining operations certainly continue to use more in addition to more resources – recent analysis of European energy use in 2017 by campaign group Sandbag noted in which Bitcoin mining was contributing to additional power demand within the technology sector.

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