Iceland May Introduce Bitcoin Mining Tax

It has been expected that Iceland will utilize more energy to mine the bitcoin than control its homes, this year. After China and Canada, Iceland is the following hot area for the huge companies invested into virtual currency mining. With a wealth of hydroelectric and geothermal power plants on this island, organizations are coming here to build up their base.

Inorder to make bitcoins, one needs enormous amounts of energy to run their PCs and mine the bitcoins. This makes the island an ideal base for bitcoin mining.

As per Johann Snorri Sigurbergsson, a business development manager at Energy Company Hitaveita Sudurnesja, this year, the virtual currency mining of Iceland is relied upon to double its energy utilization to around 100 megawatts. According to Iceland’s National Energy Authority, the household energy utilization of Iceland is 340,000, which is not as much as the mining energy utilization.

A source from the Svartsengi geothermal plant, that powers the southwestern peninsula territory where the crypto mining is done, stated:

“Four months ago, I could not have predicted this trend – but then bitcoin skyrocketed and we got a lot more emails. Just today, I came from a meeting with a mining company seeking to buy 18 megawatts.”

The energy demand has expanded because of the increasing expense of producing virtual currencies. What’s more, one of the fundamental attractions of Iceland as a mining base is its frosty atmosphere that gives natural cooling to the PC servers. Also, Iceland has a wealth of sustainable renewable energy accessible for this reason.

The development of the mining organizations in Iceland has prompted the lawmaker of its Pirate Party, Smari McCarthy to bring up the idea of taxing the profits of bitcoin mines.

McCarthy has been cited as saying to The Associated Press:

“Under normal circumstances, companies that are creating value in Iceland pay a certain amount of tax to the government. These companies are not doing that and we might want to ask ourselves whether they should.”

McCarthy has questioned the value of bitcoin mining for the general public and further contends that the occupants need to consider regulating and also taxing the rising crypto mining industry.

“We are spending tens or maybe hundreds of megawatts on producing something that has no tangible existence and no real use for humans outside the realm of financial speculation. That can’t be good.”