- Bloomberg said on Tuesday that Iceland’s main utility is to keep new Bitcoin miners away to deal with power crunches.
- Iceland is attracting Bitcoin miners who need cheap electricity to look for new coins.
- The Landsvirkjun utility has also reduced power supply to some industrial customers such as aluminum smelters and data centers.
According to a Bloomberg report on Tuesday, Iceland’s major utilities are alienating new Bitcoin miners to reduce commercial energy usage during times of tight hydropower supply.
Iceland is attractive to crypto miners who need cheap electricity to look for new coins in the face of boom and demand and prices. The prices of the world’s most traded cryptocurrencies have risen by about 80% during 2021, even after the dramatic rout last weekend.
Utility Landsvirkjun has also reduced power supply to some industrial customers such as aluminum smelters and data centers. Citing Landsvirkjun, the report states that this decline is due to low levels of hydroreservoir, power plant failures, and delays in obtaining electricity from external producers.
Landsvirkjun is currently rejecting all power requests from new clients mining electronic coins, the report said.
Among the crypto miners operating in Iceland are Canada’s Hive Blockchain Technologies Ltd., Hong Kong-listed Genesis Mining Ltd., and Bitfury Holding BV.
Bitcoin on Tuesday traded above $ 51,000 after falling to $ 42,000 on Saturday as part of the broader crypto market plunge. Analysts said the sale was triggered by a cocktail of concerns, including a new Omicron coronavirus variant, and an increased likelihood that the Federal Reserve would tighten monetary policy.
Analysts also said that the crash was exacerbated by the market structure and many traders Derivatives And borrowed money. Derivatives are contracts that allow people to bet on the direction of an asset without actually owning it.