Miners In Iceland Might Be Forced To Pay Taxes

Miners In Iceland Might Be Forced To Pay Taxes

Iceland is getting more attractive to cryptocurrency miners over time. The vast amounts of electricity needed by mining rigs force miners to look for places with cheap or renewable energy. And Iceland offers not only renewable energy sources but a cool climate as well. The Major part of electricity is produced in hydroelectric or geothermal power plants.

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Iceland is getting more attractive to cryptocurrency miners over time. The vast amounts of electricity needed by mining rigs force miners to look for places with cheap or renewable energy. And Iceland offers not only renewable energy sources but a cool climate as well. The Major part of electricity is produced in hydroelectric or geothermal power plants.

However, as the whole frenzy is dominating the crypto world, a lawmaker from the Pirate Party had proposed the government should tax miners. Icelanders are reluctant to trust major financial changes since the severe bank crash in 2008. This is why Smari McCarthy believes the citizens of Iceland are going to support his initiative.

He noted via the Associated Press that every company that creates value has to pay taxes and miners are not any different. Currently, there are various mining sites around the town of Keflavik. Furthermore, Johann Snorri Sigurbergsson forecasts that the trend is rapidly growing. Sigurbergsson is a development manager at a local energy facility. The National Energy Authority reports that the 340.000 households within Iceland are currently consuming 50 megawatts. However, the miners are expected to double the energy consumption to 100 megawatts.

Sigurbergsson, emphasizes that the sector is growing at high speed and a new mining company has asked for additional 18 megawatts. Mining centers around Keflavik are usually surrounded by tall fences and the facilities themselves allow fresh and cool air in, which is crucial in preventing the rigs from overheating.

On the other hand, miner companies such as Genesis Mining state that the energy they consume is not damaging the environment more than regular computing. However, their arguments fail to impress Reykjavik residents and McCarthy believes mining companies must pay taxes just like others do. He does not find cryptocurrencies beneficial to anyone out of the speculation game because they practically lack any real existence.

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