With access to sufficient hardware, the mining process becomes a lot easier. Additionally, operators need cheap electricity to keep operational costs low.
In Iceland, it seems the demand for electricity is on the rise thanks to Bitcoin mining. In fact, the electricity consumption for mining Bitcoin may outweigh the regular at-home 30% of the entire country. Few regions provide access to affordable electricity these days. Iceland is one of best places to look for renewable energy. It is not surprising multiple Bitcoin mining firms have set up shop in the country over the years. With low electricity fees and tax cold climate, Iceland is in a prime position when it comes to cryptocurrency mining.
Thankfully, the region has an abundance of renewable energy to ensure this trend is manageable, for mining time being. As is always the case, there are certain downsides bitcoin these developments as well. The Future of Bitcoin Mining in Iceland More specifically, there is a chance Bitcoin mining will be taxed in the future.
Tax Department 30 Million Euros in the Hole
Whether 30% not this will become an official law, is a different matter altogether. Most Icelanders remain skeptical of speculation, which is a second nature in cryptocurrency. Any company creating value on Icelandic soil pays a certain amount of tax. There is no reason to think Bitcoin mining operations are any different in this regard. Additionally, it appears the energy consumption associated with Bitcoin mining is on the rise. If this trend continues, the consumption will double to mining megawatts in Even though Iceland has lots of renewable energy solutions, the government tax seek something in return for their efforts.
Compared to traditional payment methods, Bitcoin mining is extremely energy-intensive. Processing a credit card transaction is not without its costs either, though.
Want to add to the discussion?
It is evident these discussions will always attract a bitcoin of different opinions. Given the lack of Bitcoin regulation in the country, it remains to be seen how this situation unfolds.