Iceland's Prime Minister Plans to Cut Down on Crypto Mining

In a recent Financial Times interview, Iceland’s Prime Minister, Katrín Jakobsdóttir, expressed plans to reduce cryptocurrency mining due to its high energy use, surpassing that of Icelandic homes.

This announcement aligns with a Bloomberg report noting the rise in demand for old Bitcoin mining equipment in places with cheaper electricity, notably from the US.

Iceland is celebrated for its abundant hydro and geothermal energy, making it a prime spot for Bitcoin mining and the top energy producer per capita globally.

However, Jakobsdóttir aims to shift this energy towards boosting food production and supplying power to homes and various industries, citing the enormous energy consumption by crypto data centers.

Despite Iceland's advantage of stable, renewable energy prices, the future of its crypto mining sector looks bleak with no significant plans for new power plants.

This limitation is highlighted by a curious incident where Jakobsdóttir was on the same plane as a man later accused of stealing $2 million in mining equipment.

With the upcoming Bitcoin halving, there’s a spike in interest in older mining rigs, especially among operations in Africa and South America seeking affordable power. These devices, once worth up to $11,500, are expected to sell for about $350 after the halving.

The trend indicates a shift from the early mining dominions of China and Iceland to newer regions like South America and Africa.

Ethiopia, with its low energy costs, attracts Chinese miners despite political risks. This shift represents a broader reallocation of global cryptocurrency mining efforts, driven by the search for lower electricity costs and shaped by policy decisions.