Iceland is not ready to invest in mining

The Icelandic government recently raised concerns about cryptocurrency mining and the damage it could have on the country's economy.

Since the country has not yet recovered from the crisis that happened 10 years ago, the government is worried about potential economic problems. And they are connected with the fact that the country has become a paradise for miners. 

The cool climate, cheap natural energy and large area create excellent conditions for installing mining equipment, and the climate provides natural cooling for which companies do not have to spend a lot of money. 

In addition, Iceland uses many sources of renewable energy, from geothermal generation to hydropower, which means energy is cheap, accessible and less harmful to the environment.

According to a report by KPMG, last year, energy consumption for cryptocurrency mining accounted for 90% of all used by the country.

 This in turn suggests that the country has a high level of energy consumption and a large industry economy, which depends on market volatility. If the demand for mining suddenly decreases, a number of mining companies will lose almost everything. This will lead to another state crisis. A rather bleak prospect, but given Iceland's financial problems, this problem needs to be addressed.

Iceland cannot afford the risk associated with investing in the development of cryptocurrencies, because in 10-20 years the demand for mining may cease altogether. Many believe that it is too late to deal with the problem, because if 90% of the total electricity is used for mining, it is not surprising that problems should be expected.