In Brief:
- The energy utility has been forced to reduce energy allocations to Bitcoin miners.
- The decision is taken due to issues with low hydro-reservoir levels, accessing energy from an external supplier and problems at a power station.
- Starting from Tuesday, requests for electricity from mining operations would be rejected.
Landsvirkjun, the National Iceland electrical company has marked down the amount of energy it will provide for some industries, particularly aluminum smelters and Bitcoin miners, as per reports.
The energy utility has reportedly been forced to reduce energy allocations to Bitcoin miners and several other industrial facilities after the cropping up of various issues. This includes low hydro-reservoir levels, accessing energy from an external supplier, and problems at a power station.
Mining operations have for long been a norm in the country, thanks to the abundant geothermal energy, which is harvested to create an inexpensive and abundant supply of renewable energy. It is suggested that up to 8% of BTC’s supply was created in this heavenly Scandinavian nation.
However, as per Landsvirkjun, starting from Tuesday for an undecided period of time, new requests for electricity from mining operations would be rejected.
Genesis Mining, Hive Blockchain Technologies, and Bitfury Holding are the three main Bitcoin mining companies that have opened facilities in Iceland.
Recently, miners across the globe have been insistent on an environment-friendly mining approach. This is due to the rising computer power required to keep the blockchain secure which in turn has been a subject of criticism heaped on crypto enthusiasts.
Just a few days ago, US Senator Elizabeth Warren questioned the environmental impact of Greenidge Generation’s bitcoin mining operation in New York state in a detailed letter to the company’s CEO.
Interestingly, in order to fight carbon footprint problems, all blockchains are shifting from “proof of work” to “proof of stake” approach which also reduces the energy consumption of blockchain by 99% in ETH 2.0.
