Iceland’s Prime Minister, Katrín Jakobsdóttir, has announced plans to reduce crypto mining due to its high energy use, surpassing that of Icelandic homes.
This aligns with a Bloomberg report highlighting the rise in demand for old Bitcoin mining equipment in places with cheaper electricity, particularly from the US.
Iceland is known for its abundant hydro and geothermal energy, making it a prime spot for Bitcoin mining and the top energy producer per capita globally. However, Jakobsdóttir aims to shift this energy towards boosting food production and supplying power to homes and industries.
The future of Iceland’s crypto mining sector appears bleak, with no significant plans for new power plants. The upcoming Bitcoin halving has led to a spike in interest in older mining rigs, particularly in Africa and South America, seeking affordable power.
This trend indicates a shift from early mining dominions to newer regions like South America and Africa, with Ethiopia attracting Chinese miners despite political risks.
Nine months ago, Bitcoin mining company Marathon Digital reported a 21% decrease in Bitcoin mined in June, citing harsh weather conditions in Texas and a significant fall in transaction fees as contributing factors.
Sophia Hernandez is an experienced crypto writer who has been writing about crypto and blockchain technology for 3 years. She has a deep understanding of the complexities of the crypto market and is skilled at breaking down these concepts into easy-to-understand language for readers.
