Iceland is the new target for Bitcoin miners

What country could offer more to Bitcoin miners than Iceland with its geothermal and hydroelectric power plants?

Bitcoin miners have discovered the advantages of mining in this cold Northern country and according to calculations more green energy will be used for crypto mining than powering all Icelandic homes in 2018.

“The MoonLite” is one of the projects that will be set up in Iceland. Their first facilities will open in August 2018 in Iceland. Low costs, 100% sustainable electrical supply from hydro, geothermal, and wind sources, and what’s very important from the point of view of cost-efficiency: the cool climate eliminates the need for the massive cooling infrastructure that mining facilities normally have to operate in continental climatic circumstances.

The Moonlite website said: “The MoonLite Project will operate several industrial scale data centres in the Crypto-Currency Mining industry, and plans to begin by mining predominantly Bitcoin, DASH, Litecoin, and Ethereum using 100 percent sustainable, green energy. 100 percent of the energy we consume is generated using Hydro, Geo-Thermal, and wind sources. The MoonLite Project will base its first mining operation in data center capital of the world, Iceland, where the average tariff for the industrial connections are 0.043 USD per kWh.”

Johann Snorri Sigurbergsson, a spokesman HS Orka, an Icelandic energy firm, says there are a number of potential customers who are keen to be the next miners in the country. He adds: "If all these projects are realised, we won't have enough energy for it. What we're seeing now is, you can almost call it exponential growth, I think, in the energy consumption of data centres. I don't see it stopping quite yet.”

Based on HS Orka’s calculations, Bitcoin mining operations will use approximately 840 gigawatt hours of electricity to supply data centre computers and cooling systems, for example, even if cooling means drastically lower use of electricity in Iceland. To demonstrate what that figure means, the spokesman added that Iceland's homes use about 700 gigawatt hours a year.

Currently Asia is the leader in the volume of mining capacity, but experts say that since China may shut down production soon, miners will look around to find out where electricity and operating costs are the lowest, so Iceland will be soon inundated with miners who want to exploit the country’s beneficial conditions.



Zsolt Balló