Bitcoin gobbling Iceland power supplies

Iceland is facing an “exponential” increase Bitcoin mining that is devouring the resources of power, a spokesman for the power company in iceland, HS Orka has said.

This year, the electricity use in Bitcoin mining data centers is probably superior to that of all of Iceland’s households, according to Johann snorri Sigurbergsson.

He said that many of the potential clients were willing to get in on the act.

“If all these projects become reality, we will not have enough energy to do it,” he told the BBC.

Mr Sigurbergsson calculations were first reported by the Associated Press.

Iceland has a small population of around 340,000 people.

But in the last few years have seen a marked increase in the number of new data centers, often built by companies that want to tout green credentials. Almost 100% of the energy in Iceland comes from renewable sources.

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

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

Computers that perform this validation work receive small Bitcoin rewards for their problems, which is a lucrative exercise, especially when done on a large scale.’Exponential growth’

“What we are seeing now is… you can almost call it exponential growth, I think, in the [energy] consumption of data centres”, said the Lord Sigurbergsson.

He added that he expects Bitcoin mining operations are used around 840 gigawatt hours of electricity for the supply of data center equipment and cooling systems, for example.

It is estimated that the county households, in contrast, use around 700 gigawatt hours each year.

“I don’t see it stopping quite yet,” added Mr Sigurbergsson, referring to data center projects.

“I’m getting a lot of calls, visits by potential investors or companies that want to build data centers in Iceland.”

He also said that there are many proposals for data centres that would not be possible for the supply of all of them.

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

If Iceland took the proposal of projects of mining of Bitcoin, simply would not be enough electricity to supply all of them”, he added.

HS Orka

The crypto-currency of the mining industry in Iceland recently received a boost thanks to the launch of this moonlite Project of a large data center, where multiple crypto-currencies, including Bitcoin, will be mined.

It is scheduled to open by the end of this year and will have an initial capacity of 15 megawatts, although this is expected to increase in the future.

Some have questioned how beneficial the increase of the crypto-currency mining will be that of Iceland.

Smari McCarthy, a member of the Icelandic parliament for the Pirate Party, wrote on twitter: “Cryptocurrency mining requires almost no staff, very little capital investment, and most of them do not stop taxes.

“The value of Iceland… is virtually zero.”

He also clarified earlier reports that quoted him saying that he was interested in the tax Bitcoin mining companies.

End of the post to Twitter by @smarimc

Previously it has been reported that the electricity demand of the world of the total mining operations of Bitcoin now you can exceed the use of energy of the Republic of Ireland, despite the fact that this calculation may not be completely accurate.

But as crypto-currencies gain popularity, mining operations certainly continue to use more and more resources – recent analysis of energy use in europe in 2017 by the campaign group sandbag, said that Bitcoin mining was contributing to the additional energy demand in the technology sector.