Landsvirkjun, the national electricity supply board of Iceland, has decided to cut power supply to different industries. The reduction in power supply will also affect Bitcoin mining along with other industries like aluminum smelters. It will have an effect on global Bitcoin mining hash rates since many miners operate from Iceland.
When China banned Bitcoin mining, many miners sought refuge elsewhere. One of the top destinations for miners was Iceland. The country is known for cheap power rates. Geothermal energy powers the country’s electrical supply, and the power grid has enough surplus electricity to keep Bitcoin mining operational.
Unlike other countries, Iceland is not cutting power supply to Bitcoin miners to discourage Bitcoin mining or as a stance against crypto. The recent decision comes after major faults in the country’s geothermal power plants. To keep essential sectors operational, Landsvirkjun had to reduce supply to non-essential sectors.
Iceland is a global leader in renewable energy production. Less than 1% of the country’s total power supply comes from burning fossil fuels. Geothermal plants are the chief source of energy for Iceland, apart from solar and wind power. For these reasons, many deem it to be the best country for Bitcoin miners.
Bitcoin mining has long been a subject of debate among pro-crypto lobbies and climate change activists. Powering mining operations with renewable sources of energy has come up as the most viable alternative, apart from switching to Proof of Stake mining. Iceland expects to resume normal power supply to all industries once the faults are taken care of.