Why is Iceland a good place to mine bitcoin?

The answer is simple: location, location and volcanoes. Volcanoes provide Iceland with a cheap and abundant form of renewable energy. Geothermal and hydroelectric plants abound on the island, driving down the wholesale cost of power, which lets bitcoin miners make higher profits as they run their computers 24/7, 365 days a year.

Why are Iceland's cryptocurrency miners making a comeback?

A more recent entrant to Iceland’s industrial landscape are cryptocurrency miners, lured in by the cheap electricity needed for mining new coins after demand and prices have skyrocketed. Despite recent volatility, in dollar terms Bitcoin is up more than 80% year to date, and hit an all-time high of almost $69,000 in November.

Is bitcoin reshaping Iceland's economy?

Bitcoin’s price may be down more than 50% from its highs in December, but no one has told Iceland, where the cryptocurrency and its offspring are reshaping the economy.

Why do miners mine bitcoin?

In addition to lining the pockets of miners and supporting the Bitcoin ecosystem, mining serves another vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency.