Bitcoin miners are not sensitive to the cold shoulder of frugal Iceland

Last year, the Icelandic authorities targeted cryptographic miners to raise taxes given the huge electricity consumption in this sector. At present, it seems that a growing biological movement in the country considers the expansion of mining as a potential danger to the environment.

According to a special report by Al-Jazeera, Bitcoin miners are increasingly seen as an existential threat to Iceland's unparalleled and largely untouched countryside. A coalition of ecologists, researchers and activists opposes the growth of what was until recently presented as a job-creating future industry. Iceland, however, is at a dead end, as miners bitcoins show little signs of slowing down.

Perfect geothermal energy in Iceland

Iceland's unique location in the North Atlantic is home to a geothermal activity that makes geothermal energy production extremely easy and inexpensive compared to world electricity prices. As a result, crypto-miners have identified the Scandinavian region of Europe – especially Iceland – as a gold mine exploiting bitcoins. In addition to cheap power, naturally low temperatures are also attractive. This makes mining cooling platforms much easier and cheaper, further increasing profits in a narrow margin business.

For years, the cryptosphere has admitted that the use of renewable energy in the exploitation of bitcoins cancels the well-known argument that the exploitation of bitcoins is harmful to the environment because of the size of its carbon footprint. Icelandic environmentalists note, however, that the growing demand for electricity for mining activities is leading to the expansion of geothermal and hydroelectric power generation infrastructure.

As they point out, the process of creating "clean" energy is not so environmentally friendly, after all. On the one hand, the construction of new hydroelectric dams irreversibly modifies landscapes and topography, engulfing a pristine countryside and changing the nature of rivers and waterfalls. Geothermal power plants must be built over natural thermal springs to access the heat of the Earth's core. It also permanently changes the intact landscape of Iceland.

Ecologist Tomas Gudbartsson reportedly told Al Jazeera:

"Iceland still has one of the largest wilderness areas in Europe. We will simply destroy these areas if we continue. "

Risk Factors Related to Bitcoin Mining in Iceland

The problem for Icelandic ecologists is that the expansion of cryptocasting is about to develop even faster than before. First of all, the persistent weakness of prices in the cryptography market makes mining a very low margin activity. Minors must seek out all the advantages over their peers to become more competitive and more profitable. The inexpensive power of Iceland and the extremely cold temperatures are the ideal combination for miners seeking to make the most of the performance of their platforms for minimal investment.

Moreover, after a relatively weak but sustained cryptography price rebound since the beginning of the year, cryptoextraction is gaining popularity. The Chinese government's recent decision to crack down on crypto-miners domiciled in energy-rich areas like the Sichuan Valley region further complicates the situation. Many of these miners will eventually move to Iceland and neighboring countries.

Iceland seems even more likely to stick to the craw, is that, despite its energy-consuming nature, this sector remains relatively automated and generates little or no employment. To summarize, Iceland can accommodate Chinese minors expelled to the country only to see them increase its energy needs and indirectly induce the destruction of the environment without doing much to the local economy.