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Why Bitcoin mining is so popular in Iceland?

Iceland and Sweden are natural choices when it comes to cryptocurrency mining operations. Their inexpensive electricity and cold climate make mining friendlier naturally.

Bitcoin mining is popular in Iceland for two reasons; first, it is very cold and second it has vast amount of renewable energy and therefore lots of cheap electricity.

The country, which came into the media limelight after theft of 600 Bitcoin-mining computers, however, faces a new wave of crime as a result of this increased activity. For instance, a Bitcoin millionaire at 19, Erik Finman told Euronews that there are “massive heists”, assassination attempts, blackmail and hacking galore in this industry in the country.

Because cryptocurrency mining operations produce a lot of heat and the arctic winds in Iceland’s. It bring in a free cooling system, making it to work with nature very well. People doing mining do not even have to install expensive air conditioning units and heaters. Like Sweden, Iceland is a natural choice for those who want to do cryptocurrency mining. Due to the combination of the two — inexpensive energy and cold climate.

The country has many geothermal and hydroelectric plants that produce cheap electricity. Thus that finally makes cryptocurrency mining less costly and possible to maximize profits.

However, Finman told Euronews that he gets death threats all the time. However these are some of the repercussions for the growing Bitcoin mining trends in the country.

He said although the $2 million (€1.6 million) worth of machines stolen in the country seems like much, this is just a relatively small operation. Bitcoin and crypto mining requires intense processors and graphics cards and they are not cheap. Prices have also been going higher given the high interest in Bitcoin mining in the recent past and increasing prices especially in the last year.

Regulation is not an answer to the increased popularity of Bitcoin mining and heists. This is because people will start mining it under the radar, he says.

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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