It is expected that the Icelandic crypt industry will move away from the encryption business and will switch to "blockchain companies as well". This is according to forecasts made by a number of local insiders who spoke to the Red Herring news site on September 23rd.
Halldór Jörgensson, president of the Borealis Data Center in Reykjavik, told Red Herring that the demand from local encryption and blockchain structures is "moving more towards pure business blockchain" rather than focusing on extraction of Bitcoin.
According to Jörgensson, the frenzy around Bitcoin (BTC) mining activity has shrunk to a level that "is not as crazy as it was a year ago" when the cryptocurrency reached its all-time high. Nonetheless, the president suggested that Bitcoin's "mining" wave contributed to the faster growth of local energy and data industries, whose well-developed infrastructure should now boost blockchain-related activities.
Iceland has become one of the leaders in mining encryption due to its naturally cold climate, as well as the abundance of low-cost renewable energy sources – mainly geothermal and hydroelectric. The country is home to one of the world's 5 largest cryptographic farms, whose operator Genesis Mining is the largest consumer of electricity in Iceland.
In February, Johann Snorri Sigurbergsson, responsible for the commercial development of a local energy supplier HS Orka predicted that the volume of crypto mining in Iceland will probably double in 2018.
HS Chief Executive Officer Orka Asgeir Margeirsson said in July that the cryptocurrency industry pushed "the fourth revolution", while the director of the Icelandic Institute for Intelligent Machines declared that the Bitcoin miners are "central to the industrial revolution still underway. ".
However, Sigurbergsson of HS Orka also stated that Bitcoin "probably will not be very far in the future", arguing that the data centers that are currently used by miners will eventually become new technology incubators.
Earlier this week, Bitfury blockchain technology group announced the launch of next-generation BTC next-generation hardware, with the intention of using the new machines in its mining centers in Canada, Norway, Iceland and Georgia.