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Geothermal Powerstation | © DeepBluC/Flickr
Geothermal Powerstation | © DeepBluC/Flickr
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Making Digital Money in Iceland With Your Bare Hands

Picture of Camille Buckley
Updated: 4 October 2017
Iceland has the perfect factors for a Bitcoin mine: cold climate, fast internet, and cheap energy. With the digital currency business slowly gaining momentum, Bitcoin miners, the people who create new bitcoins, seek new mining infrastructure. If you need a refresher on what the virtual currency is and how it works, check out What is Bitcoin, and How Does it Work? The process of mining can be incredibly lucrative as anyone can be rewarded with the digital currency if they contribute to helping process transactions on the network. This surreal industry has companies dedicated to mining.
Geothermal borehole house | © Lydur Skulason
Geothermal borehole house | © Lydur Skulason

One of these companies is Genesis Mining, one of the leading so-called “cloud” mining companies, which allows customers to mine without using their own specialized hardware for the work. Genesis Mining has a Bitcoin Mining facility built for the primary effort of mining bitcoins. As with most cryptocurrencies, they work with hardware designed especially for optimum mining performances, which Genesis Mining shows in the following video.

Most of the company’s operations are based in Iceland. With the cool climate of Iceland cutting the costs of cooling the hardware that generates tremendous heat and the cheap energy costs due to the geothermal activity of the island, Genesis Mining has chosen the perfect location in which to make a profit. They also fit in very well with all of the other cutting edge technology companies based in Iceland.

Genesis Mining has the world’s largest Ethereum Mining farm, the Enigma Ethereum Mine. Ethereum has its own virtual currency named Ether, a new development in Bitcoin Mining that is better able at handling complex financial interactions. Check out this article for more information about Understanding Ethereum, Bitcoin’s Virtual Cousin. The Enigma Ethereum Mine was built to support the Ethereum Project, which is described on the company’s website as: “A decentralized platform that runs smart contracts. Cryptocurrency applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.”

Currently, the largest Bitcoin Mining operation in the world is Bitmain, a Beijing-based company with mines located in Inner Mongolia, accounting for 56% of global Bitcoin Mining wealth. The second largest, DiscusFish, is also operating in China with a total of 17% of global mining wealth. The third largest, Bitfury, is at 16%, and has private mines in Finland, Georgia, and also in Iceland. However, Genesis Mining remains the largest Bitcoin Mining company in Iceland.