Iceland's prime minister favors farming over finance as Bitcoin miners feast on the island's cheap power

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Chris' gaming experiences go back to the mid-nineties when he conned his parents into buying an 'educational PC' that was conveniently overpowered to play Doom and Tie Fighter. He developed a love of extreme overclocking that destroyed his savings despite the cheaper hardware on offer via his job at a PC store.

maximalist, you think it's a giant scam or you fall somewhere in between, what's not up for debate is that Bitcoin mining uses a lot of energy. In order to keep costs as low as possible, miners look for cheap energy. The lower the energy costs, the greater the profit. And there are few countries with energy costs as low as they are in Iceland.

But in order to do that, other market sectors have to compete with the voracious appetite of Bitcoin miners, who are preparing for the upcoming mining reward halving event, which is estimated to occur. That means miners are seeking to lower costs in the face of lower rewards, making Iceland even more attractive for large scale miners.

Iceland sits atop the Mid-Atlantic ridge. It's been in the news in recent months thanks to a series of volcanic eruptions. This gives it access to vast amounts of renewable energy, but that means little if mining demands continue to increase at the expense of other sectors of the economy—and households.

 

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