Bitcoin's price has soared by more than 20 percent this month and more than tripled since January last year
Bitcoin's price has soared by more than 20 percent this month and more than tripled since January last year. AFP

KEY POINTS

  • 'Bitcoin is an issue worldwide,' said Iceland's prime minister in an interview
  • Iceland is the world's largest Bitcoin hashrate producer per capita
  • On the contrary, the island nation only produces 1% of its own grain products

Iceland, known for its suitable environment for Bitcoin mining, may abandon cryptocurrency miners in the future and instead focus on food security as electricity grows scarcer by the day, Prime Minister Katrín Jakobsdóttir said.

In an interview with Financial Times, Jakobsdóttir said that there are concerns about energy sustainability as some industries, that experience power shortages during winter, resort to non-renewable energy sources.

Due to its location atop the Mid-Atlantic ridge, Iceland has vast amounts of renewable energy that have attracted Bitcoin miners in recent years. However, as more miners deem Iceland a suitable choice for their activities, mining demands also surge, and Jakobsdóttir noted that other industries, particularly agriculture, may be forced to pay the price.

"Bitcoin is an issue worldwide ... but data centers in Iceland use a significant share of our green energy," she told the outlet. In fact, Iceland has become the world's largest energy producer per capita and the world's top Bitcoin hashrate producer per capita.

The latest data reveals that Iceland is the "most bitcoin-mining-dense country on the planet" and it consumes around 120 MW (megawatts) of power.

She went on to reveal that the island nation will shift toward an economic future of increased food production partnered with a transfer of renewable energy away from the crypto mining industry and toward other Iceland sectors and households. After all, Iceland produces only 1% of its total grains and only 43% of its own vegetables.

Iceland's decision to reconsider its Bitcoin mining industry comes at a critical time in crypto mining as BTC prices are expected to hit new highs by the end of the year.

On Friday, research and brokerage firm Bernstein revised its year-end Bitcoin price target from $80,000 to $90,000 by the end of 2024. It cited general bull market conditions and strong exchange-traded fund (ETF) inflows as well as the expected "relatively mild" impact the April halving event will have on miners.

Earlier last week, British banking giant Standard Chartered led the way in increasing Bitcoin price projections as it made a significant hike in its BTC year-end price target: from $100,000 to $150,000. It also said that the digital coin may hit $250,000 sometime next year if spot Bitcoin ETF inflows reach the bank's mid-point estimate of $75 billion.

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