Iceland Emerges As Top BTC Hash Rate Producer Per Capita
As new leaders in Bitcoin mining emerge, the global balance is shifting, and Iceland is among them. Recently, Jaran Mellerud, a researcher on Bitcoin mining, tweeted about BTC mining in Iceland.
BTC Miners In Iceland Enjoying Cheap Power
In his report, Mellerud highlighted that despite being a small country, Iceland has the highest hash rate production per capita worldwide. Furthermore, he emphasized that Iceland has been involved in BTC mining for a considerable time.
“Due to its affordable electricity and enterprising population, Iceland was among the earliest countries besides China to experience the growth of large-scale Bitcoin mining,” Mellerud added. According to Mellerud’s estimation, the BTC mining sector in Iceland utilizes approximately 120MW of electricity.
This represents around 1.3% of the global hash rate. However, considering Iceland’s population of roughly 370,000, it produces the largest hash rate per capita.
Furthermore, Iceland hosts numerous major international corporations engaged in Bitcoin mining, such as Bitfury, Genesis Mining, Hive Blockchain, and several local companies. Meanwhile, Iceland is the top electricity-rich nation in the world.
This is because Iceland is fueled by energy from waterfalls and volcanoes. It generates nearly twice as much electricity as Norway, a major hub for Bitcoin mining in Europe.
Moreover, these two nations are the only ones that entirely depend on renewable energy for electricity. Additionally, the report pointed out that Iceland has surplus hydro and geothermal energy resources.
As a result, the electricity prices in the country are very low, one of the lowest in the world.
BTC Mining Profitability Rises By 35% In 2023
Nonetheless, miners have indicated that obtaining energy allocations for new data centers in Iceland is becoming increasingly challenging. Consequently, the growth potential is expected to remain at existing levels.
In contrast to China and the US, Iceland is considered among the most politically stable countries in the world. As a result, Mellerud noted that:
“Miners have been operating there for almost a decade without encountering any notable problems with the authorities. This could potentially be the most reliable jurisdiction for Bitcoin mining on a global scale.”
Per Blockchain.com data, the network’s hash rate reached an unprecedented peak of 318 EH/s (exahashes per second) this week. Although it has surged by 25% since the start of this year, it is presently fluctuating slightly below that level.
As the network difficulty reaches its highest at 39T, competition among miners to secure the next block will intensify. Despite this, mining profitability has increased by 35% since the start of 2023, thanks to the BTC price surge.
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