Cryptocurrency Miners Search for New Energy Source in Farming
Iceland is a country that’s quite popular for its stunning nature, but currently, it’s attracting firms and cryptocurrency miners. In order to solve the increasing demand for electricity from crypto servers, a local math teacher named Krista Hannesdóttir has devised a solution that should result in more green mining, while also helping the country’s farmers.
The Crypto Mining Process
Today, there exists more than 2,000 electronic cryptos issued by startup companies and crypto projects. These coins are used for trading on exchange platforms, in which every single transaction requires a verification. This process takes place through complex mathematical calculations done by a computer network, consuming huge amounts of electricity. Mining is being gifted with new crypto coins for using the computing power to serve the entire network.
Cryptocurrency mining was considered to be quite profitable for miners; however, as the value of the digital funds starting dropping, profits fell off a cliff as well. Crypto miners started looking for other destinations to enhance efficiency, such as Iceland.
A blend of economic as well as geographical aspects makes Iceland perfect for crypto mining. Iceland boasts a highly refined infrastructure to generate hydropower energy and it actually generates impressively around eighty percent of its total energy at these power stations with the remainder almost entirely supplied by geo-thermal resources. Crypto minors require trustworthy, cheap power of about two or three cents per kWh.
These perfect conditions for this process catch the eye of many foreign firms, which has led experts to question whether crypto mining is sustainable.
Cryptocurrencies are highly affecting the country’s economy, increasing sources of profit and introducing many job opportunities in the country. Iceland has established itself as a technology hub. However, not taking into consideration the increasing prices of electricity, the country may just completely run out if demand keeps growing like it currently is. Demand for electricity has been increasing so much that it’s greatly exceeding Iceland’s private consumption of energy.
Hannesdóttir, who owns a mining farm, suggests a solution that is quite simple yet clever and helps increase profits and decrease the impact on the environment. What she does is pay farmers for excess energy and then turns it to electricity to be used on her mining rigs. In the meantime, the heat that will be produced from the equipment can further be recaptured for any other purposes. This solution creates a mutual benefit for everyone involved. However, not all of the farmers that have geothermal energy in Iceland are thrilled with having large, noisy mining equipment on their farms. It will take a lot of effort and time to persuade them to take part in this solution because they have no idea what the cryptocurrency world is all about and how it operates.