In an interview with the Financial Times, Iceland's Prime Minister Katrin Jakobsdottir hinted at plans to divert the country's renewable energy resources. In the future, the focus will be on promoting food production rather than supporting it. cryptocurrency mining industry. The move is about increasing food self-sufficiency, as well as building a broader electricity grid that will bring renewable energy from electricity generation to Iceland's homes and across a variety of industries.
Iceland boasts huge hydroelectric and geothermal power plants and is one of the largest energy exporters per capita. These green energy sources have become the main reason why the country is one of the world leaders in energy production. Bitcoin hash rate. However, the government is currently prioritizing other sectors over crypto mining.
Cryptocurrency mining dilemma
One of the aspects that has been in the spotlight is Iceland's renewable energy sector has positioned itself not only as a leading green power producer, but also as a preferred destination for crypto miners around the world. While the benefits of such technology are undeniable, the Prime Minister highlighted the energy waste of data centers used by Bitcoin and other cryptocurrencies. With the increasing demand for electricity and the lack of construction of new power plants, Iceland is in the position of having to deal with energy shortages.
According to industry research institute Luxor, this lack of energy is the main reason why crypto mining has not expanded in Iceland.Furthermore, future Bitcoin block reward halved It sparked a global change in the world of cryptocurrency mining. In the past decade since Bitcoin's creation, mining rigs have not only moved from the United States to regions with lower energy costs such as Africa and South America, but they have also improved in terms of efficiency and increased profitability.
Changes in global mining and Iceland's agricultural aspirations
As the crypto mining industry progresses, energy prices will be a factor in launching new centers for crypto mining.country like ethiopia, Tanzania, Paraguay, and Uruguay currently offer investors good locations for Bitcoin mining companies. This type of economy in these regions has lower operating costs. Therefore, they will be viable beyond their half-life.
Meanwhile, Iceland is looking inward, and the prime minister's push into agriculture is a key turning point. Through this initiative, the concepts of import substitution and domestic benefits using renewable energy are clearly reflected. This strategy will not only ensure a stable energy supply for Iceland into the future, but also strengthen the country's food self-sufficiency in the face of global adversity.
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