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Bitcoin Mining is Profitable, at Least in Iceland

A relatively small crypto-mining operation in Iceland has come up with a simple but effective solution: it uses the geothermic energy of farmers’ machines to turn mining equipment into a win-win situation.

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A relatively small crypto-mining operation in Iceland has come up with a simple but effective solution: it uses the geothermic energy of farmers’ machines to turn mining equipment into a win-win situation.

Icelant Bitcoin profitability

The mining operation is led by Icelandic mathematics professor Krista Hennesdottir, who devised the intelligent system to stay competitive. The teacher has realized that farmers have an excess of geothermic energy that could be used for cryptocurrency mining. In turn, mining platforms produce a large amount of excess energy that can be used for heating.

“Farmers have a lot of storage space, so it’s easier for us to move our equipment to your location. You can also heat the storage space, which is quite clean. In general terms, it is reducing income and reducing the cost of energy.”

He said.

This business model allows your company to be profitable even though it is relatively small. However, he also explains that it has not been particularly easy to explain to the regular farmers what these machines were and how it is a win-win situation. She explained:

“We really had to explain what it was, that it is a machine that makes money and uses energy. People are cautious, obviously, because it sounds too good to be true. But in reality it is really beneficial for us to obtain energy and space at a lower cost.”

As many people already know, digital currency mining has been criticized for consuming huge amounts of energy. According to current estimates, Bitcoin mining (BTC) consumes approximately 22 terawat-hours (Twh) of energy per year, which is approximately to the amount of electricity that Ireland consumes.

Due to the accessible use of the geothermal resource, citizens of Iceland have been increasingly exploiting cryptocurrencies. The energy consumed by the country’s mining activities was estimated at around 840 Gwh, an amount that exceeds the electricity consumed by the homes of its more than 300,000 residents.

In November of 2017 alone, the global energy consumption of Bitcoin mining reached a staggering 30.14 Twh per year, suggesting that Bitcoin miners consume more electricity than 19 European countries, including Iceland itself.

In this regard, the authorities of that country have been concerned about the impact that this type of industry can generate on the natural ecosystem of the nation that attracts more than two million tourists a year due to its natural beauty.

However, it is worth noting that in previous posts, karma has been treated in relation to this Achilles heel of Bitcoin, and precisely according to previously-discussed specialized data such as that of researcher Katrina Kelly-Pitou, the global financial system consumes three times as much. energy that Bitcoin mining.

If there is a flexible policy of the countries in leasing lots of land for the big miners to develop sustainable projects for their own electricity generation based on their consumption such as hydroelectric plants, wind farms, among other friendly with the environment; the problem could be drastically reduced in addition to the financial and welfare benefits that this type of infrastructure would generate around it.

For now, the simple solution of Ms. Hennesdottir seems to be a definitive proof of the above.

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