In a few months, the price of Bitcoin have fluctuated so much, while in Iceland Bitcoin is only going upward. The cryptocurrencies success across the world had unexpected impact on around 340,000 people of the island and it might outcome as energy storage in the Atlantic Ocean.
For cryptocurrency servers, Iceland is the prime location across the world. According to analyst, Bitcoin is described as 21st century gold and it has increased the electricity demand in the industry. It is happening for the first time that Iceland’s energy consumption is exceeding with the rising demand and if this will continue then it will attract more and more cryptocurrency mining companies.
Many companies have reached Iceland regarding the request of opening cryptocurrency mining data centers in just a few months. The country has to slow down the investments in the mid of increasing electricity generation capacity.
Johann Snorri Sigurbergsson (Spokesman of HS Orka) said that, “In the last five years, there has been a plenty of discussion on the data centers in Iceland; however it was quite slow beginning”. Continuing the discussion, he said, “While in the recent six months, interest in cryptocurrency mining has increased a lot. And in just three months, we are receiving a call each day from famous companies regarding the set-up of their mining project here.”
Earlier, he explained to the BBC, “If all of the projects are considered, then we don’t have sufficient energy for them.”
Each cryptocurrency works on the blockchain. Verifying or confirming the transactions on the platform require solving complex mathematical equations as network is decentralized and no central authority is monitoring the payments. Solving such complex calculations needs plenty of computing power and that ultimately requires loads of electricity.
Situated amid Atlantic Ocean, Iceland is well-known for its mighty rivers and hot springs, and it produces around 80% of hydroelectric energy in comparison to the 6 percent produced in the US. The cold climate of Iceland makes it an ideal place for setting up mining data centers consisting large number of servers. There is no overheating danger if the mining data center gets a great chance of occupying its location in Iceland.
Owing to these climatic conditions, most of the mining companies are accessing their remote location to Iceland. Some of them have already shifted and some are in the moving process.
Some of the analysts have already sensed that the tourism is the main revenue source of Iceland as it is already a heaven for tourists. Estimates have been made that computing power required for cryptocurrency mining might account as much as energy needed by Denmark.
Currently, as per the experts, Bitcoin is the biggest cryptocurrency of the world and uses around 0.14 percent of electricity till December 2017. Global consumption is not enough so what Iceland can do where energy consumption is suddenly spiked and growing at a faster pace each day.
Some of the networks are pushing via changes in the protocols and designing their business model in a way that it makes less usage of energy. Although, implementing these kind changes are not at all easy. A few companies are even providing the computing power in order to earn share that is equal to mining reward.