Iceland has begun to implement a new law that will see the country provide power only in exchange for cryptocurrency. Bitcoin miners are likely to be among those negatively impacted by this change, as they have so far been allowed access at no charge.
Iceland has cut power to new Bitcoin miners. The country is now considering banning the use of cryptocurrency mining in Iceland. Read more in detail here: asic mining.
Landsvirkjun, Iceland’s national electricity provider, has reduced the amount of power it would offer to certain companies, such as aluminum smelters and Bitcoin miners.
Due to a combination of challenges, including a failure at a power plant, low hydro-reservoir levels, and receiving electricity from an external provider, the island’s power company has been obliged to limit energy allocations to southwestern Bitcoin miners and different industrial enterprises.
The country’s availability of geothermal energy, which is harnessed to generate a cheap and abundant source of renewable energy, has long attracted mining businesses. According to Landsvirkjun, all new requests for power from mining activities would be refused beginning December 7 for an undetermined amount of time.
The three primary Bitcoin mining businesses that have built operations in Iceland are Canada’s Hive Blockchain Technologies, Genesis Mining, and Bitfury Holding.
Miners have been attempting to achieve the promise of environmentally friendly Bitcoin mining in Iceland for almost a decade. Cloud Hashing relocated 100 miners to Iceland in 2013. HydroMiner GmbH, an Austrian business, raised $2.8 million in an initial coin offering (ICO) in November 2017 to deploy mining rigs at Icelandic power facilities.
Non-renewable energy accounts for less than 1% of total power generation in the nation.
Emerging technology and carbon prices are among the UN’s COP26 climate change priorities.
The distribution failure has harmed the country’s aluminum smelting sector the most. Aluminum prices increased 1.1 percent on December 7 to reflect a supply constraint caused by a recent jump in demand and the current power shortage.
Green blockchain projects have become popular across the world in 2021. The energy-intensive Bitcoin mining was discussed by thought leaders at the COP26 summit in Glasgow, Scotland. The GloCha United Citizens Organization (UCO) for Climate Empowerment was launched during the meeting. It will use blockchain technology to help achieve climate change goals.