Large virtual currency mining companies have established a base on the island, which has an abundance of geothermal and hydroelectric power plants.

In this photo taken on Jan. 18, 2018, large clouds of steam rise into the sky from the Svartsengi geothermal power station in GrindavÃk, Iceland. With massive amounts of energy needed to obtain bitcoins, large cryptocurrency mining companies have established a base in Iceland, a cold North Atlantic island with an abundance of renewable energy from geothermal and hydroelectric power plants. (AP Photos/Egill Bjarnason)

And with massive amounts of energy needed to run the computers that create bitcoins, it is seen as an ideal base.

Johann Snorri Sigurbergsson, business development manager at the energy company Hitaveita Sudurnesja, said he expected Iceland’s virtual currency mining to double its energy consumption to around 100 megawatts this year.

That is more than households use on the island nation of 340,000, according to Iceland’s National Energy Authority.

Bitcoin’s value has jumped

BERLIN, GERMANY – DECEMBER 06: A close-up view of an illustration model of a Bitcoin is seen on December 6, 2013 in Berlin, Germany. Central bankers around the world have warned about the virtual currency bitcoin. Prices have soared as more merchants accept it as payment and investors are pouring money into new bitcoin-related ventures. (Photo by Thomas Trutschel/Photothek via Getty Images)

(Picture: Thomas Trutschel/Photothek via Getty Images) ‘Four months ago, I could not have predicted this trend – but then bitcoin skyrocketed and we got a lot more emails,’ he said at the Svartsengi geothermal energy plant, which powers the southwestern peninsula where the mining takes place. ‘Just today, I came from a meeting with a mining company seeking to buy 18 megawatts,’ he said. Pregnant virgin speaks out about using a sperm donor to conceive her child Among the main attractions of setting up bitcoin in Iceland is the natural cooling for the computer servers and the competitive prices for Iceland’s abundance of renewable energy. The energy demand has developed because of the soaring cost of producing virtual currencies. Computers are used to make complex calculations that verify a running ledger of all the transactions in virtual currencies around the world.





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