Iceland’s Prime Minister Shifts Focus from Crypto Mining to Agriculture
Iceland, known for its abundant hydroelectric and geothermal plants, has become the world’s leading energy producer per capita. The country has also gained recognition as the top Bitcoin hashrate producer. However, Prime Minister Katrín Jakobsdóttir envisions a future centered around agriculture rather than crypto mining.
Jakobsdóttir recently expressed her goal of increasing food production in Iceland while redirecting renewable energy away from the crypto mining industry and towards households and other sectors. She emphasized that although Bitcoin is a global issue, data centers in Iceland consume a significant share of the country’s green energy.
Iceland’s 100% renewable electricity prices are not affected by fluctuations in global fuel prices, making it an attractive destination for crypto miners. However, due to the scarcity of electricity under high demand and limited construction of new power plants, the crypto mining industry is not expected to expand further in the country, according to research firm Luxor.
The Prime Minister’s focus on agriculture stems from a desire to reduce reliance on imported food. This perspective is reinforced by an incident where she coincidentally shared a flight with a man suspected of stealing $2 million worth of crypto miners from various locations in Iceland before fleeing to Sweden.
Last-Generation Miners Seek New Markets
As Bitcoin’s upcoming block reward halving approaches, there is growing worldwide demand for last-generation crypto miners owned by U.S.-based companies. These machines are now being sought after by mining operations in Africa and South America, where energy costs are lower.
According to Bloomberg’s recent report, approximately 600,000 Bitmain Antminer s19 series miners, which were priced at up to $11,500 each at their peak, are being exported from the U.S. After the halving, these machines are expected to fetch only around $350 each.
While China and Iceland were among the first countries to establish significant crypto mining industries, the next wave of development is occurring in South America and Africa. Chinese miners, for instance, are attracted to Ethiopia due to its low energy costs, despite concerns about political instability in the region.
Hot Take: Iceland’s Shifting Priorities
Iceland’s Prime Minister Katrín Jakobsdóttir is taking a bold step by shifting the nation’s focus from crypto mining to agriculture. This decision reflects a desire to prioritize self-sufficiency in food production and reduce reliance on imported goods. While Iceland has been a major player in the crypto mining industry, the scarcity of electricity and limited construction of new power plants have hindered further growth in this sector.
The upcoming block reward halving in Bitcoin has also led to a global demand for last-generation crypto miners owned by U.S.-based companies. These machines are now finding new markets in Africa and South America, where energy costs are more affordable. This shift indicates a changing landscape in the crypto mining industry, with emerging regions becoming attractive destinations for miners.
Overall, Iceland’s decision to prioritize agriculture over crypto mining demonstrates a commitment to sustainability and self-sufficiency. By redirecting renewable energy resources towards households and other industries, the country aims to achieve a more balanced and resilient economy.
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