[2018-02-11]Iceland to use more energy mining bitcoin than powering its homes

[coin_lover]

Iceland is expected to use more energy mining bitcoin than powering its homes this year.

Large virtual currency mining companies have established a base on the island, which has an abundance of geothermal and hydroelectric power plants.

And with massive amounts of energy needed to run the computers that create bitcoins, it is seen as an ideal base.

Johann Snorri Sigurbergsson, business development manager at the energy company Hitaveita Sudurnesja, said he expected Iceland’s virtual currency mining to double its energy consumption to around 100 megawatts this year.

That is more than households use on the island nation of 340,000, according to Iceland’s National Energy Authority.

http://metro.co.uk/2018/02/11/iceland-use-energy-mining-bitcoin-powering-homes-year-7304155/

[odolvlobo]

It is crazy and not sustainable, yet I can't think of why it might be a problem.

[superjeyy]

It is crazy and not sustainable, yet I can't think of why it might be a problem.

I guess it would be a problem if Iceland's Energy Authority starts prioritizing mining more Bitcoins rather than serving their people by providing ample energy for their homes; but I guess they all have it figured out. I just hope that equal amount of energy is given to the other aspects that needs such amount of energy to function as to not cause any trouble or chaos with regards to the distribution of energy.

[Ossidalm]

It is crazy and not sustainable, yet I can't think of why it might be a problem.

I guess it would be a problem if Iceland's Energy Authority starts prioritizing mining more Bitcoins rather than serving their people by providing ample energy for their homes; but I guess they all have it figured out. I just hope that equal amount of energy is given to the other aspects that needs such amount of energy to function as to not cause any trouble or chaos with regards to the distribution of energy.

They can build the mining operation in remote places and will not affect the power supply of existing users.

[okae]

Obviously, Iceland, like in other paradises for mining; I can not see any problem with energy, not at least if it did not affect directly with prices or other things to people.

Anyway if people think this is a scandal, just wait a few years more and you will see how this will increased a lot...: P

[1Referee]

They can build the mining operation in remote places and will not affect the power supply of existing users.

That's more often than not already the case, and it will likely start to 'affect' the regular power requirements needed for everything not related to mining, if nothing changes. That being said, the main power suppliers always have plenty enough extra capacity they can use in case there are extreme usage peaks. In case their extra capacity isn't able to cope with the fierce miner demand, they should consider upgrading their entire way of operating. If the long term demand is there, which is almost a guarantee, then I don't see why the power suppliers aren't willing to upgrade. If they aren't willing to upgrade, which is their loss, then miners will look for an alternative location, it's that simple. It's all about the business opportunities the power hungry miners offer, and there are enough power suppliers ready to serve them. If it isn't Iceland, another country will happily welcome them.

[orions.belt19]

It is crazy and not sustainable, yet I can't think of why it might be a problem.

I guess it would be a problem if Iceland's Energy Authority starts prioritizing mining more Bitcoins rather than serving their people by providing ample energy for their homes; but I guess they all have it figured out. I just hope that equal amount of energy is given to the other aspects that needs such amount of energy to function as to not cause any trouble or chaos with regards to the distribution of energy.

They can build the mining operation in remote places and will not affect the power supply of existing users.

It becomes a problem if the huge energy consumption becomes detrimental for the citizens and residents of Iceland but so long as they have sufficient energy, then it won't be much of a bother to others. It's not that environment friendly because mining consumes too much energy - as said more than common households. It's not sustainable and I think that miners should come up with energy efficient ways to mine otherwise mining would become too costly in the long run.

[prehisto]

Honestly i do not see the problem, if it sis done right ( manage your power output from plants- priority house holds and then mining rings)

Their biggest advantage as country is cheap geothermal energy and it is smart to use it in a way that contributes their economy.

[richardsNY]

Their biggest advantage as country is cheap geothermal energy and it is smart to use it in a way that contributes their economy.

That's a bit difficult to explain to people suffering from hypocrisy when it comes to how much they "care" about environmental standards, while in reality they allow other parts of the world to be destroyed. Mining requires a heavy load of power, that's nothing new anymore, but the main point of importance is that the heat these farms generate, can be used to warm houses and other economical building, resulting in a much lower power consumption overall. If this is played out in a smart way, the miners and Iceland itself could be great partners to make sure demand and supply are on par with each other. It just requires open minded people using their brains in the correct manner. Isn't it about money after all? I really don't see a problem here.

[Dany44]

It's up to Iceland how to use its energy, the tax on mining can be imposed easily and the situation may change

[Xavofat]

If the energy consumption increases rapidly, I suspect that the electricity costs would increase, thus reducing the amount that the energy consumption rises.

This is speculation about the future rather than a comment on the present.  While it may be a serious problem, it seems that they're exaggerating potential effects in order to reach their headline and the premise of their article.

At least the electricity that miners are mostly using here is from renewable sources rather than fossil fuels.

[Yaunfitda]

Obviously, Iceland, like in other paradises for mining; I can not see any problem with energy, not at least if it did not affect directly with prices or other things to people.

Anyway if people think this is a scandal, just wait a few years more and you will see how this will increased a lot...: P

Agree. I think Iceland is suitable for mining, abundance of electric geothermal energy, weather is cold and there are a lot of isolated places that they can put up a farm, away from the cities.

As for using more energy to bitcoin mining, it has something to do with the population. Maybe there are really less people living in the country that's why they only spend less energy.

I'm sure they have made research and studies before implementing the bitcoin farms. If the government deems it will bring more harm than good then the idea will not put into reality.

[Slow death]

That is more than households use on the island nation of 340,000, according to Iceland’s National Energy Authority.

there are many industries that consume a lot of energy and I do not see people complaining that industries X are consuming energy that they give to provide 100 houses for example, as certain people do not like the bitcoin, they are making this comparison... the miners will pay for electricity and taxes, this is not different from any other industry, it is up to the government to create more energy sources to ensure that all citizens have energy in their homes.

If the government deems it will bring more harm than good then the idea will not put into reality.

Most governments prefer their energy to be used by large industries that pay for electricity, taxes and create jobs.