Iceland crypto-entrepreneurs are looking to diversify the nation’s industry from purely mining Bitcoin (BTC) to the Block chain Business.
Market insiders allude to the catastrophic fall of the value of bitcoin as necessitating this move.
Demand for cryptocurrency and blockchain facilities has shifted
Halldór Jörgensson, chairman of Reykjavik-based Borealis Data Center says that demand for crypto and blockchain facilities has shifted from bitcoin mining to ‘pure blockchain businesses.”
Necessary Factors for Mining
A naturally cold climate is also more efficient for cooling ASICs or Bitcoin mining machines. In addition to an abundance of cost-efficient renewable energy sources.
Iceland’s Power Usage Effectiveness (PUE) is the most efficient in Europe and around the world.
The figure stands at 1.03, while the average figure in Europe is 1.78- twice as much as that in Iceland.
For every $100 invoiced, the real cost is $103 meaning an investment into the blockchain business in Iceland is more likely to be cost-effective. Little wonder that so many multinationals, such as Bitfury and Genesis have moved into the country and even outspent local investors who are chiefly hobbyists.
Halldór Jörgensson further says that prior to the drop in the Bitcoin price, miners had a skyrocketing demand from locals and other international players. However, the crash did not dampen their resolve to utilize the favorable conditions in the country.
He goes on to say, “The bitcoin wave of high bitcoin demand, helped us to build out really fast; because there were really aggressive or interested parties who wanted to do things and we managed to do the build-out. We strongly believe that when the whole bitcoin thing has settled down, there’s another wave that will crop up that will utilize these infrastructures that have been built up during the bitcoin mining phase.”
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