Mining of bitcoins can lead to a shortage of electricity in Iceland

Mining for bitcoins in Iceland has entered a stage of exponential growth, and this activity takes more and more energy resources of the country, said the representative of the local energy company HS Orka.

This year, the electricity consumption centers of bitcoin mining will likely exceed the energy consumption of the entire population, said Johann Snorri Sigurbergsson.

According to him, more and more people want to engage in mining.

“If all these projects are implemented, we will not have enough power”, — he told in interview Bi-bi-si.

In Iceland live only about 340 thousand people.

But in recent years in Iceland, more and more centres for processing information, owners who are attracted by the clean reputation of the country. Almost 100% of the electricity Iceland comes from renewable sources .

Under the bitcoin mining refers to the process of connecting computers to a global network of bitcoins and their use to authenticate transactions between users and the cryptocurrency and supplements them in the block chain information in order to generate new electronic money. For mining need computers with large computing capacity.

Exponential growth

Users who first performs a complex calculation, receive a small remuneration in the form of bitcoins. If the mining operation is large enough, it is possible to earn decent money.

“Now we see, I would say, exponential growth in terms of power consumption for the recycling information,” says Johann Snorri Sigurbergsson.

He adds that, according to his calculations, this year the centres will need 840 gigawatts of electricity for computers and cooling systems.

The entire population of the country uses about 700 gigawatts of electricity per year.

“I don’t think that this process will soon slow down,” says Johann Snorri Sigurbergsson of information processing centers. “I tried to call, or just come here, potential investors and representatives of companies intending to open such centers,” he continues.

According to him, projects so much that if they are implemented, the country won’t be enough electricity.

His company, he says, prefers to deal with companies offering long-term investment.

Industry mining of cryptocurrencies in Iceland recently received the aid, after the country had launched a project Moonlite is a major information processing center, where you can engage in mining various cryptocurrencies, including bitcoin.

The center will open its doors this year, and in the first stage, he will need 15 megawatts of electricity.

Not everyone is convinced that the mining industry will benefit Iceland.

Smari McCarthy, MP from the “Party of pirates”, tweeted: “For mining cryptocurrency is not required almost no staff, mining requires minimal investment, and with these operations practically do not pay taxes. The benefit to Iceland is close to zero”.

In the same tweet, he clarified his earlier statements on the same subject, which showed that he wished to impose mining taxes.

“Always, always, always my main aim was the progress of our society. I don’t want to be the bad guy from the point of view of supporters of the cryptocurrency. On the contrary, I want to join them to strengthen this invention,” wrote Smari McCarthy on Twitter”.

Earlier it was reported that the global consumption of electricity by mining operations already exceeds the consumption of the whole of Ireland. Some, however, dispute these figures.

But with the growing popularity of cryptocurrency mining uses more and more resources. NGO Sandbag has analysed the use of electricity in Europe in 2017 and argues that mining has led to increased demand for energy in the high-tech sector.

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