Due to its sheer abundance of geothermal and hydroelectric power plants Iceland became the home of many Cryptocurrency mining farms and companies in the last couple of months. The near power plants guarantee cheap energy and the cold temperatures further minimize the energy costs used for cooling the rigs. Energy saving is a huge deal for miners since its literally the only variable cost to save money while mining.
According to the Iceland’s National Energy Authority and Johann Snorri Sigurbergsson, business development manager at the energy company HS Veitur those mining projects will most likely double Iceland’s energy consumption. Which basically means: Iceland is using more energy to mine Bitcoin & Co than to power their 340,000 citiziens homes.
This shows clearly one of the biggest problem there is with Bitcoin. The energy consumption and therefore the transaction fees of the network is to high. Although many investors still see a great potential in Bitcoins and in its future price. There are many new technologies out there used by some Altcoins like the Tangle-technology used by IOTA with a significant increase in energy costs.
Even though I see a great future in Cryptocurrencies there are many things that need to improve before it can be implemented mainstream.
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