Iceland to Produce Corn Instead of Producing BTC via Mining: PM

Iceland, known for its abundant hydroelectric and geothermal energy sources, has carved a niche for itself as a global leader in energy production per capita. This unique advantage has propelled the nation to the forefront of the Bitcoin hashrate production arena. 

However, as Prime Minister Katrín Jakobsdóttir casts her gaze towards the future, she envisions fields of corn rather than rows of crypto mining rigs.

As reported earlier by TheCoinRise, Iceland decided to cut the amount of power it will provide for several industries, including Bitcoin mining and aluminum smelting, in 2021.

Iceland PM Articulates Her Vision

In a recent interview with the Financial Times, Jakobsdóttir articulated her vision of steering Iceland’s renewable energy away from crypto mining and towards fulfilling domestic needs, such as households and other industries. 

Despite Iceland’s allure for crypto miners due to its 100% renewable electricity and insulation from global fuel price fluctuations, the Prime Minister is cognizant of the strain that crypto mining places on the country’s energy resources.

Stagnant Crypto Mining Industry

Acknowledging the growing scarcity of electricity amidst high demand and a dearth of new power plants under construction, research firm Luxor predicts a stagnant crypto mining industry in Iceland. 

Jakobsdóttir’s emphasis on agriculture stems from her aspiration to bolster food production domestically and reduce reliance on imported goods.

Surge in Demand for Crypto Miners

The impending block reward halving in the Bitcoin network has sparked a surge in demand for last-generation crypto miners, particularly those owned by U.S.-based companies. 

These machines, such as the Bitmain Antminer s19 series, are now being redirected from the U.S. to emerging mining hubs in Africa and South America, where energy costs are lower. However, the post-halving estimated value of these machines is a mere fraction of their peak prices, signaling a shifting landscape in the crypto mining industry.

China and Iceland Synonyms with Crypto Mining

While China and Iceland have long been synonymous with crypto mining, the tide is turning towards South America and Africa. Chinese miners are increasingly eyeing countries like Ethiopia, attracted by the promise of low energy costs despite concerns over political instability.

As Iceland grapples with the future trajectory of its energy sector, Jakobsdóttir’s vision underscores the importance of striking a balance between harnessing renewable resources for economic growth and ensuring sustainable development for future generations. 

However, the Central Bank of Ireland has finally approved the crypto exchange platform Gemini to offer electronic money services in the country.