Bitcoin mining will have limited energy consumption in Iceland

 “Country is experiencing electricity shortages and will control supply for mining”

  Iceland is suffering an energy shortage, causing the country to suspend supply to some industries, including bitcoin mining, as pointed out by a Bloomberg report. Landsvirkjun, the country's leading electricity supplier, is cutting back on supplies to aluminum smelters, data centers, fishmeal factories and bitcoin (BTC)

  According to Tinna Traustadottir, vice president of sales and consumer services, record demand played a key role in that decision. This is the latest challenge in a long list of adversities for the mining industry in the Nordic region, which has been hesitant to allow resources from renewable sources to be taken over by the crypto industry.

  Iceland, Scandinavia and Bitcoin miners have invaded Iceland and other Nordic countries in search of cheap electricity. To this day, companies like Hive Blockchain, Genesis Mining and Bitfury have an established presence in Iceland.

  Despite the country's attractiveness, local energy authorities are far less likely to welcome bitcoin mining. “There will be little excess energy in 2021 and 2022,” warned Hordur Arnarson, CEO of Landsvirkjun. “Because of the climate issues we see, many of the interesting segments are growing rapidly and several of them need electricity.” Elsewhere in the Nordic region, this trend has prompted authorities to ban energy-intensive mining. Finansinspektionen, the financial supervisory authority in Sweden, did this in November this year. “Sweden needs the renewable energy used by cryptoactive producers to transition our essential services and the increasing use by miners threatens our ability to comply with the Paris Agreement,” the regulator said, adding that “therefore, cryptoactive mining high consumption should be prohibited”. The Swedish regulator isn't the only one that wants to take more extreme measures against crypto mining, even if it indicates the use of clean energy. “I've been saying this for a long time: you can't spend resources sustainably. Using renewable sources for mining is not a solution,” Alex de Vries, founder of Digiconomist, told Decrypt. *Edited by Diego FB with permission from Decrypt.co.

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