As new countries take the lead in Bitcoin mining, the global mining market is changing. Due to its wealth of renewable energy, Iceland has joined them.According to Hashrate Index, Iceland has become one of Europe’s remaining mining havens. The island nation also possesses enormous amounts of untapped geothermal and hydropower resources.
Researcher Jaran Mellerud discussed the condition of bitcoin mining in Iceland in a report published on February 21. He pointed out that the tiny nation, which is also not a newcomer to Bitcoin mining, produces the most hash rates per capita in the entire world.
It was one of the first nations outside of China to witness the emergence of industrial-scale Bitcoin mining thanks to its inexpensive electricity and enterprising residents.
Mellerud calculated that the nation’s BTC mining sector uses about 120 megawatts of electricity annually. This translates to a 1.3% global hash rate, which isn’t much. Nonetheless, with a population of over 370,000, Iceland is the country that produces the most hash rate per person.
In addition, Iceland is home to a number of significant worldwide corporations. They include a number of domestic companies, including as Genesis Mining, Hive Blockchain, and Bitfury.
Iceland is the nation with the largest electrical production capacity in the world thanks to its volcanoes and waterfalls. It produces roughly twice as much as Norway, which is the second-largest mining hub in Europe and a powerhouse for Bitcoin mining. The two countries are actually the only two in the world that solely rely on renewable energy.
According to the survey, Iceland’s electricity prices are among the lowest in the world because to the stranded geothermal and hydro energy.
Yet, miners have noted that it is becoming more difficult to get energy allotments for new data centers. This suggests that for the foreseeable future, the growth potential is expected to stay at its current levels.
Iceland is recognized as one of the most politically stable countries in the world, unlike China and, more recently, the United States. Thus, Mellerud came to the following conclusion:
It may be the most stable Bitcoin mining jurisdiction internationally because miners have operated there for nearly ten years without encountering any big problems with the authorities.
This week, according to Blockchain.com, the network hash rate reached an all-time high of 318 exahashes per second (EHs). After rising by 25% since the start of this year, it is currently circling slightly below those levels.
Moreover, the network difficulty is nearly at its high at 39T, increasing the competition among miners to claim the next block. However since the start of 2023, the rise in BTC prices has increased mining profitability by 35%.