Iceland Leads Bitcoin Mining Hash Rate Production Per Capita

The balance of Bitcoin mining around the world is shifting as new nations emerge as leaders. Iceland has become one of them due to its abundance of renewable energy.

Iceland has become one of Europe’s last Bitcoin mining havens, according to the Hashrate Index. Furthermore, the island nation has enormous amounts of stranded hydropower and geothermal energy.

On February 21, Bitcoin mining researcher Jaran Mellerud reported on the state of Bitcoin mining in Iceland. He noted that the tiny country is the largest per capita hash rate producer globally – and it’s also no novice to BTC mining.

“Thanks to its cheap electricity and entrepreneurial locals, it was one of the first countries outside of China to see industrial-scale Bitcoin mining emerge.”

Iceland, a BTC Mining Pioneer

Mellerud estimated that the BTC mining industry in the country consumes around 120 megawatts of electricity. This equates to a global hash rate of 1.3% which doesn’t sound like much. However, Iceland’s population is around 370,000, making the nation the largest hash rate producer per capita.

Furthermore, there are several large international companies with operations in Iceland. These include Bitfury, Hive Blockchain, Genesis Mining and several other domestic firms.

Iceland is powered by volcanoes and waterfalls, making it the most electricity-rich country in the world. It generates almost double that of the second country on the list, Norway, a Bitcoin mining powerhouse and Europe’s largest mining hub. In fact, the two nations are the only two in the world that are fully powered by renewable energy.

The report noted that this stranded geothermal energy and hydropower makes electricity prices extremely cheap in Iceland, among the cheapest in the world.

However, miners have reported that it is becoming more difficult to access energy allocations for new data centers. This means that the growth potential is likely to remain at the current level for the foreseeable future.

Unlike China and more recently the United States, Iceland is considered one of the most politically stable nations in the world. With that in mind, Mellerud concluded:

“Miners have operated there for nearly ten years without any significant problems with the authorities, potentially making it the most stable Bitcoin mining jurisdiction globally.”

Bitcoin Mining Outlook

The network’s hash rate hit an all-time high of 318 exahashes per second (EH\s) this week, according to Blockchain.com. It hovers just below those levels after gaining 25% since the start of this year.

The network difficulty is also near the peak at 39T, making it more competitive among miners to secure the next block. However, the increase in BTC prices has improved mining profitability by 35% since the beginning of 2023.