Given the cheap electricity and cold climate of Iceland, the Nordic nation has seen an influx of cryptocurrency mining activity in recent years. This sudden development has also created some interesting side effects as many people are now beginning to view Iceland as a major fintech hub.
The Future of Cryptocurrency in Iceland
Running a successful and profitable cryptocurrency mining operation requires several key conditions such as access to cheap electricity and having an empty data center. Owing to its optimal resources, Iceland lends itself perfectly to such types of businesses, even though not everyone within the nation is convinced about the potential of cryptocurrencies.
HS Orka power plant’s Johann Snorri Sigurbergsson isn’t a big believer in cryptocurrency and he is confident that Bitcoin will “disappear not far in the future”, which is a rather interesting stance. Even though there is always the possibility of Bitcoin becoming irrelevant in a few years from now, no one can deny the possibilities that the currency offers.
Even so, Sigurbergsson is confident that the influx of cryptocurrency mining firms will have a positive impact on his country’s economy.
There is a valid reason why the country isn’t officially supporting cryptocurrency right now. Iceland has a colorful history when it comes to finance in general. Given the unclear future of cryptocurrency in terms of value, growth, and regulation, maintaining a wary approach appears to be more than warranted. At the same time, diversifying its economy is still direly needed for Iceland, and cryptocurrencies may continue to play a role of importance in this regard.
Regardless of the longevity of cryptocurrency mining in Iceland, the industry plays an integral role within the nations overall economy. This new industry has given local entrepreneurs and experts plenty of insights as to how existing infrastructure can be bolstered and expanded upon to accommodate new business models.
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